Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 44,700 48,500 9,500 84,000 $ 11,000 16,600 20,000 100,000 39,100 $186,700 $186,700 During January 2021, the following transactions occur: January 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. January 12 Purchase 1,100 shares of treasury stock for $19 per share. January 15 Pay cash on accounts payable, $18,500. January 21 Provide services to customers for cash, $51,100. January 22 Receive cash on accounts receivable, $18,600. 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 life of three years and a residual value of $12,000. d. Accrued income taxes at the end of January are $3,100. View transaction list View journal entry worksheet (x Credit No 1 Date Jan 02 Debit 46,000 Account Title Cash Common Stock Additional Paid-in Capital 2,300 43,700 2 Jan 09 20,400 Accounts Receivable Service Revenue 20,400 13 Jan 10 6,900 Supplies Accounts Payable 6,900 K 4 Jan 12 20,900 Treasury Stock Cash 20,900 5 Jan 15 Accounts Payable Cash 18,500 18,500 K 6 Jan 21 51,100 Cash Service Revenue 51,100 K 7 Jan 22 18,600 Cash Accounts Receivable 18,600 K 8 Jan 29 4,240 Dividends Dividends Payable 4,240 9 Jan 30 16,800 Cash Treasury Stock Additional Paid-in Capital 800 16,000 10 Jan 31 44,000 Salaries Expense Cash 44,000 11 Jan 31 8,200 Utilities Expense Utilities Payable 8,200 12 Jan 31 9,300 Supplies Expense Supplies 9,300 K 13 Jan 31 Depreciation Expense Accumulated Depreciation K 14 Jan 31 3,100 Income Tax Expense Income Tax Payable 3,100 Journal entry worksheet 1 10 11 12 13 IIII. 14 15 16 17 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. Prepare the adjusting entry for depreciation. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Depreciation Expense Accumulated Depreciation Record entry Clear entry View general journal Journal entry worksheet Record the closing entry for revenue. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Software Licence Compliance Survive The Audits

Authors: R. Concessao

1st Edition

1539161560, 978-1539161561

More Books

Students also viewed these Accounting questions