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On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts

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On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $43,200 45,500 8.000 69,000 $ 9,500 15, 100 15,000 85,000 41,100 $165,700 $165, 700 Sk 1 ces During January 2021, the following transactions occur January 2 Tonge an additional 2,000 shares of $1 par value common stock for $40,000. January 9 Provide services to customers on account, $15,600. January 10 Purchase additional supplies on account, $5,400. January 12 Purchase 1.200 shares of treasury stock for $17 per share. January 15 Pay canh on accounts payable, $17,000. January 21 Provide services to customers for cash, $49,600 January 22 Receive canh on accounts receivable, $17,100. January 29 Declare a cash dividend of $0.30 per share to all share outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 15,000 shares outstanding on January 3, 2021, and dividende are not paid on troury stock. January 30 Mesel 000 shares of treasury stock for $19 per share, January 31 tay cash for salaries during January $42,500. The following information is available on January 31, 2021 a Unpaid utilities for the month of January are $6,700. b. Supplies at the end of January total $5,600, 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 $10,500, d. Accrued income taxes at the end of January are $2,500, General Requirement General Journal Income Trial Balance Ledger 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 earings 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 $2.40 last year (i,e an average of $0.20 per month). Is earnings per share for January 2021 better or worse than last year's average? Earrings per share is 15 earnings per share for January 2021 better or worse than last year's average? Requirement Trial Balance Analysis Journal Ledger Balance Sheet Statement Choose the appropriate accounts to complete the company's balance sheet. Make sure to select 'adjusted' from th which will then populate the balances in those accounts from the adjusted trial balance. Adjusted Grand Finale Fireworks Classified Balance Sheet January 31, 2021 ook Assets Liabilities rences Current Assets: Cash Accounts Receivable Supplies Current Liabilities: 85,200 Accounts Payable 44.000 Income Tax Payable 5,600 Utilities Payable Dividends Payable 3,500 2,500 6,700 4,740 24 134,800 17,440 Total Current Assets Noncurrent Assets: Equipment Accumulated Depreciation 14 69,000 (11 125) Total Current Liabilities Stockholders' Equity Common Stock Additional Pald-in Capital Retained Earnings Treasury Stock 11 12 17,000 124,600 38,195 (6,800) Total Stockholders' Equity Total Liabilities & Stockholders' Equity 172.995 190,435 Total Assets $ 192,675 S Adjusted Grand Finale Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 65,200 Service Revenue $ $ 65,200 Total Revenue Depreciation Expense Supplies Expense Salaries Expense Utilities Expense 2 t t t 1,625 7,800 42,500 6,700 Total Operating Expenses Income After Taxes Dividends Net Income 58,625 6,575 4,740 1,835 $

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