On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances Accounts Debit Credit Cash $ 44,000 Accounts Receivable 47,100 Supplies 8,800 Equipment 77,000 Accumulated Depreciation $ 10,300 Accounts Payable 15,900 Common Stock, $1 par value 13,000 Additional Paid in Capital 93,000 Retained Earnings 44,700 Totals $ 176,900 $ 176,900 During January 2021, the following transactions occur January 2 Issue an additional 2,000 shares of $1 par value common stock for $40,000 January 9 Provide services to customers on account, $17,900 January 10 Purchase additional supplies on account, $6,200 January 12 Purchase 1,000 shares of treasury stock for $20 per share January 15 Pay cash on accounts payable, $17,800 January 21 Provide services to customers for cash, $50,400 January 22 Receive cash on accounts receivable, $17,900 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 13,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock ) January 30 Resell 600 shares of treasury stock for $22 per share January 31 Pay cash for salaries during January, $43,300 The following information is available on January 31, 2021 Unpaid utilities for the month of January are $7,500 Supplies at the end of January total $6,400 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 $11,300 Accrued income taxes at the end of January are $2,400 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 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 years average Earnings per share is Is earnings per share for January 2021 better or worse than last years average

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Posted on Sep 20, 2024

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 2,000 shares of $1 par value common stock for $40,000.
January	9	Provide services to customers on account, $17,900.
January	10	Purchase additional supplies on account, $6,200.
January	12	Purchase 1,000 shares of treasury stock for $20 per share.
January	15	Pay cash on accounts payable, $17,800.
January	21	Provide services to customers for cash, $50,400.
January	22	Receive cash on accounts receivable, $17,900.
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 13,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.)
January	30	Resell 600 shares of treasury stock for $22 per share.
January	31	Pay cash for salaries during January, $43,300.

The following information is available on January 31, 2021.

Unpaid utilities for the month of January are $7,500.
Supplies at the end of January total $6,400.
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 $11,300.
Accrued income taxes at the end of January are $2,400.

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 years average?

Earnings per share is:

Is earnings per share for January 2021 better or worse than last years average?