Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Credit Debit $ 43,800 46,700 8,600 75,000 Accounts Cash
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Credit Debit $ 43,800 46,700 8,600 75,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals $ 10,100 15,700 11,000 91,000 46,300 $174,100 $174,100 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, $16,700. January 10 Purchase additional supplies on account, $6,000. January 12 Purchase 1,300 shares of treasury stock for $19 per share. January 15 Pay cash on accounts payable, $17,600. January 21 Provide services to customers for cash, $50,200. January 22 Receive cash on accounts receivable, $17,700. January 29 Declare a cash dividend of $0.30 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 11,000 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, $43,100. The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $7,300. b. Supplies at the end of January total $6,200. 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 $11,100. d. Accrued income taxes at the end of January are $2,200. Journal entry worksheet Record issuance of an additional 2,000 shares of $1 par value common stock for $40,000. Note: Enter debits before credits. Account Title Debit Credit Date Jan 02 Record entry Clear entry View general journal Journal entry worksheet Record the providing of services to customers on account, $16,700. Note: Enter debits before credits. Date Account Title Debit Credit Jan 09 Record entry Clear entry View general journal Journal entry worksheet Record purchase of additional supplies on account, $6,000. Note: Enter debits before credits. Account Title Debit Credit Date Jan 10 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 3 4 5 6 7 8 17 > Record purchase of 1,300 shares of treasury stock for $19 per share. Note: Enter debits before credits. Account Title Debit Credit Date Jan 12 Record entry Clear entry View general journal Journal entry worksheet Record payment of cash on accounts payable, $17,600. Note: Enter debits before credits. Account Title Debit Credit Date Jan 15 Record entry Clear entry View general journal
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started