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 9,500 Equipment 84,000 Accumulated Depreciation $ 11,000 Accounts Payable 16,600 Common Stock, $1 par value 20,000 Additional Paid in Capital 100,000 Retained Earnings 39,100 Totals $ 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 Unpaid utilities for the month of January are $8,200 Supplies at the end of January total $7,100 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 $12,000 Accrued income taxes at the end of January are $3,100 3 Prepare an adjusted trial balance as of January 31, 2021 4 Prepare an income statement for the period ended January 31, 2021 5 Prepare a classified balance sheet as of January 31, 2021 (Amounts to be deducted should be indicated by a minus sign ) 6 Record closing entries (If no entry is required for a transaction event, select No journal entry required in the first account field )

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Posted on Sep 23, 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 2,300 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.

Unpaid utilities for the month of January are $8,200.
Supplies at the end of January total $7,100..
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 $12,000..
Accrued income taxes at the end of January are $3,100.

3. Prepare an adjusted trial balance as of January 31, 2021.

4. Prepare an income statement for the period ended January 31, 2021.

5. Prepare a classified balance sheet as of January 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

6. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)