On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $44,700 Accounts Receivable 48,500 Supplies Equipment Accumulated Depreciation Accounts Payable 9,500 84,000 11,000 16,600 Common Stock, $1 par value Additional Paid-in Capital Retained Earnings 20,000 100,000 39,100 $186,700 $186,700 Totals During January 2021, the following transactions occur 2 Issue an additional 2,300 shares of $1 par value common stock for $46,000 January 9 Provide services to customers on account, $20,400. January 10 Purchase additional supplies on account, $6,900. 12 Purchase 1,100 shares of treasury stock for $19 per share. January January 15 Pay cash on accounts payable, $18,500 January 21 Provide services to customers for cash, $51,100. January 22 Receive cash ts receivable, $18,600. J January 29 Declare a cash dividend of $0.20 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 20,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 800 shares of treasury stock for $21 per share. January 31 Pay cash for salaries during January, $44,000 The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $8,200. b. Supplies at the end of January total $7,100. c. Depreciation on the equipment for the month of January is calculated using the straightline method. At the time the equipment was purchased, the company estimated a service lifee of three years and a residual value of $12,000. d. Accrued income taxes at the end of January are $3,100. c. Depreciation on the equipment for the month of January is calculated using the straightline method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $12,000. d. Accrued income taxes at the end of January are $3,100. .. General Ledger General Income Trial Balance Balance Sheet Analysis Requirement Journal Statement Enter your Return on Equity value to one decimal place and earnings per share value to 2 decimal places Analyze the fol lowing for Grand Finale Fireworks: (a) Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.50%, is the company more or less profitable than other companies in the same industry? The return on equity is: % More Is the company more or less profitable than other companies? (b) How many shares of common stock are outstanding as of January 31, 2021? The number of common shares outstanding as of January 31, 2021 is sharee out engs p ndin shares outstnual divide the total by 2 ge shares of common stock outstanding take the beginning $0.20 per month), is earnings per share for January 2021 better or worse than last year's average? Calculate for the month of (Hint: To calculate per share was $2.40 lost vear (i.e., average of Earnings per share is: Is earnings per share for January 2021 better or worse than last year's average? better Balance Sheet Analysis
