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On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: During January 2021, the following transactions occur: January 2
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:
During January 2021, the following transactions occur:
January | 2 | Issue an additional 2,200 shares of $1 par value common stock for $44,000. | ||
January | 9 | Provide services to customers on account, $16,600. | ||
January | 10 | Purchase additional supplies on account, $5,900. | ||
January | 12 | Purchase 1,200 shares of treasury stock for $24 per share. | ||
January | 15 | Pay cash on accounts payable, $17,500. | ||
January | 21 | Provide services to customers for cash, $50,100. | ||
January | 22 | Receive cash on accounts receivable, $17,600. | ||
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 10,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) | ||
January | 30 | Resell 600 shares of treasury stock for $26 per share. | ||
January | 31 | Pay cash for salaries during January, $43,000. |
The following information is available on January 31, 2021.
- Unpaid utilities for the month of January are $7,200.
- Supplies at the end of January total $6,100.
- 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 $11,000.
- Accrued income taxes at the end of January are $2,100.
1) Record Journal Entries
2) Income Statement
3)Balance Sheet4)
Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 43,700 46,500 8,500 74,000 $ 10,000 15,600 10,000 90,000 47,100 $172,700 $172,700 If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 ... 17 Record issuance of an additional 2,200 shares of $1 par value common stock for $44,000. Note: Enter debits before credits. Account Title Debit Credit Date Jan 02 Record entry Clear entry View general journal Choose the appropriate accounts to complete the company's balance sheet. Make sure to select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Post-closing Unadjusted Adjusted Grand Finale Fireworks Classified Balance Sheet January 31, 2021 Post-closing Assets Liabilities Current Assets Current Liabilities: Total Current Assets Noncurrent Assets: Total Current Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets $ 0 $ Enter your Return on Equity value to one decimal place and earnings per share value to 2 decimal places. Analyze the following 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: 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 (c) Calculate earnings per share for the month of January. (Hint: To calculate average shares of common stock outstanding take the beginning shares outstanding plus the ending shares outstanding and divide the total by 2.) If earnings per share was $3.60 last year (i.e., an average of $0.30 per month), is earnings per share for January 2021 better or worse than last year's average? Earnings per share is: Is earnings per share for January 2021 better or worse than last year's average
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