Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 Issue an additional 2,200 shares of $1 par value common stock for $44,000.
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 Pay 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 shares 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 Resell 900 shares of treasury stock for $24 per share.
January 31 Pay cash for salaries during January, $43,500.

The following information is available on January 31, 2021.

  1. Unpaid utilities for the month of January are $7,700.
  2. Supplies at the end of January total $6,600.
  3. 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.
  4. Accrued income taxes at the end of January are $2,600.

image text in transcribed

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 Grand Finale Fireworks Classified Balance Sheet January 31, 2021 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 | $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Optimization Methods In Finance

Authors: Gérard Cornuéjols, Javier Peña, Reha Tütüncü

2nd Edition

1107056748, 9781107056749

More Books

Students also viewed these Accounting questions