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On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 44,200 Accounts Receivable 47,500

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On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 44,200 Accounts Receivable 47,500 Supplies 9,000 Equipment 79,000 Accumulated Depreciation $ 10,500 Accounts Payable 16,100 Common Stock, $1 par value 15,000 Additional Paid-in Capital 95,000 Retained Earnings 43,100 Totals $179,700 $179,700 During January 2021, the following transactions occur January 2 Isabe an additional 2,200 shares of $1 par value common stock for $44,900. January 9 Provide services to customers on account, $18,300. January 10 Purchase additional supplies on account, $6,400. January 12 Purchase 1,000 shares of treasury stock for $22 per share. January 15 Day cash on accounts payable, $18,000. January 21 Provide services to customers for cash, $50,600. January 22 Receive cash on accounts receivable, $18, 100. January 29 Declare a cash dividend of $0.30 per share to all whares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 15,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Rosell 900 shares of treasury stook for $24 per share. January 31 Pay cash for salaries during January, $43,500. The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $7700. b. Supplies at the end of January total $6,600. 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 $11,500. d. Accrued income taxes at the end of January are $2,600. General Journal General Ledger Trial Balance Income Statement Balance Sheet Requirement 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 Finalo Fireworks: (a) Calculate the retum on equity for the month of January. If the average return on equity for the industry for January is 2.30%, 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 oarnings per share was $2.40 last year (1.e., an average of $0.20 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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