On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances:...
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On January 1, 2024, 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 $42,900 Credit 44,900 7,700 66,000 $9,200 14,800 12,000 82,000 43,500 $161,500 $161,500 During January 2024, 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, $14,800. January 10 Purchase additional supplies on account, $5,100. January 12 Purchase 1,000 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $16,700. January 21 Provide services to customers for cash, $49,300. 1 8 January 29 Dividends Dividends Payable 3,600 3,600 9 January 30 Cash Treasury Stock Additional Paid-in Capital 15,400 14,000 1,400 10 January 31 Salaries Expense 42,000 Cash 42,000 11 January 31 Utilities Expense Utilities Payable 12 January 31 Supplies Expense Supplies 13 January 31 Depreciation Expense Accumulated Depreciation 2 14 January 31 Income Tax Expense Income Tax Payable January 22 Receive cash on accounts receivable, $16,800. 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 12,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) 15 January 31 Service Revenue Retained Earnings January 30 Resell 700 shares of treasury stock for $22 per share. January 31 Pay cash for salaries during January, $42,200. The following information is available on January 31, 2024. a. Unpaid utilities for the month of January are $6,400. b. Supplies at the end of January total $5,300. c. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $10,200. d. Accrued income taxes at the end of January are $2,200. 16 January 31 Retained Earnings Salaries Expense Utilities Expense Depreciation Expense Income Tax Expense Supplies Expense Using the information from the requirements above, complete the 'Analysis' tab. (Enter your return on equity value to or and earnings per share value to 2 decimal places.) 17 January 31 Retained Earnings Dividends Analyze the following for Grand Finale Fireworks: < Requirement General Ledger (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? More 18.4 % (b) How many shares of common stock are outstanding as of January 31, 2024? The number of common shares outstanding as of January 31, 2024 is 13,900 (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 earnings per share was $3.60 last year (i.e., an average of $0.30 per month), is earnings per share for January 2024 better or worse than last year's average? Earnings per share is: Is earnings per share for January 2024 better or worse than last year's average? $ 0.24 Better 3 6,400 6,400 5,300 5,300 1,550 1,550 2,200 2,200 60,500 60,500 57,450 42,000 6,400 1,550 2,200 5,300 Prov 1 of 1 3,600 3,600x On January 1, 2024, 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 $42,900 Credit 44,900 7,700 66,000 $9,200 14,800 12,000 82,000 43,500 $161,500 $161,500 During January 2024, 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, $14,800. January 10 Purchase additional supplies on account, $5,100. January 12 Purchase 1,000 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $16,700. January 21 Provide services to customers for cash, $49,300. 1 8 January 29 Dividends Dividends Payable 3,600 3,600 9 January 30 Cash Treasury Stock Additional Paid-in Capital 15,400 14,000 1,400 10 January 31 Salaries Expense 42,000 Cash 42,000 11 January 31 Utilities Expense Utilities Payable 12 January 31 Supplies Expense Supplies 13 January 31 Depreciation Expense Accumulated Depreciation 2 14 January 31 Income Tax Expense Income Tax Payable January 22 Receive cash on accounts receivable, $16,800. 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 12,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) 15 January 31 Service Revenue Retained Earnings January 30 Resell 700 shares of treasury stock for $22 per share. January 31 Pay cash for salaries during January, $42,200. The following information is available on January 31, 2024. a. Unpaid utilities for the month of January are $6,400. b. Supplies at the end of January total $5,300. c. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $10,200. d. Accrued income taxes at the end of January are $2,200. 16 January 31 Retained Earnings Salaries Expense Utilities Expense Depreciation Expense Income Tax Expense Supplies Expense Using the information from the requirements above, complete the 'Analysis' tab. (Enter your return on equity value to or and earnings per share value to 2 decimal places.) 17 January 31 Retained Earnings Dividends Analyze the following for Grand Finale Fireworks: < Requirement General Ledger (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? More 18.4 % (b) How many shares of common stock are outstanding as of January 31, 2024? The number of common shares outstanding as of January 31, 2024 is 13,900 (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 earnings per share was $3.60 last year (i.e., an average of $0.30 per month), is earnings per share for January 2024 better or worse than last year's average? Earnings per share is: Is earnings per share for January 2024 better or worse than last year's average? $ 0.24 Better 3 6,400 6,400 5,300 5,300 1,550 1,550 2,200 2,200 60,500 60,500 57,450 42,000 6,400 1,550 2,200 5,300 Prov 1 of 1 3,600 3,600x
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