One question separated into parts.

Determine General Entries:

Determine Adjusted Trial Balance:

Determine Balance Sheet:

Determine closing entries:

Analyze:

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 $ 42,700 44,500 7,500 64,000 $ 9,000 14,600 10,000 80,000 45,100 $ 158,700 $ 158,700 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, $14,300. January 10 Purchase additional supplies on account, $4,900. January 12 Purchase 1,000 shares of treasury stock for $18 per share. January 15 Pay cash on accounts payable, $16.500. January 21 Provide services to customers for cash, $49, 100. January 22 Receive cash on accounts receivable, $16, 600. January 29 Declare a cash dividend of $0.30 per share to all share outstanding on January 29, the dividend Le payable on February 15. (Hint: Grand Yanale Fireworks had 10.000 shares outstanding on January 1, 2021 and dividends are not paid on treasury stock) January 30 Resell 600 shares of treasury stock for $20 per share. January 31 Pay cash for salaries during January $42,000. 1 Unpaid utilities for the month of January are $6,200. Prepare the adjusting entry for utilities. 2 Supplies at the end of January total $5,100. Prepare the adjusting entry for supplies. 3 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 $10,000. Prepare the adjusting entry for depreciation. 4 Accrued income taxes at the end of January are $2,000. Prepare the adjusting entry for income taxes. a. Unpaid utilities for the month of January are $6,200. b. Supplies at the end of January total $5,100. 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 $10,000. d. Accrued Income taxes at the end of January are $2,000 3. Prepare an adjusted trial balance as of January 31, 2021. Answer is complete but not entirely correct. Credit GRAND FINALE FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Cash $ 34,800 Accounts Receivable 91,300 Supplies 5,100 @ Equipment 64.000 Accumulated Deprecation Accounts Payable Income Tax Payable Dividends Payable Common Stock Additional Paid in Capital Retained Earnings Treasury Stock 200 Additional Paid in Capital Dividends 3.300 Service Revenue Salanes Expense 12.000 Depreciation Expense 1,500 Supplies Expense 7.300 Us Expense 8.200 Income Tax Expense 2.000 OOOOOOOOOOOOOOOOOOOO 10.500 9.200 2.000 3.300 12.000 118.000 49.100 1200 63.100 Totals $ 254,700 $ 264.700 5. Prepare a classified balance sheet as of January 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) Assets Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Answer is not complete. GRAND FINALE FIREWORKS Classified Balance Sheet January 31, 2021 Liabilities $ 34,800 Accounts Payable 91,300 Income Tax Payable 5.100 Dividends Payable 64.000 Common Stock (10.500) Additional Paid-in Capital Total Current Liabilities Stockholders' Equity Additional Paid-in Capital Dividends OO $ 9.200 2.000 3,300 12,000 X 118.000 144,500 Q000 o Total Current Assets 184,700 Total Stockholders Equity Total Liabilities and Stockholders' Equity 0 $ 144.500 $ 184,700 Total Assets 1 Record the dosing entry for revenue. 2 Record the dosing entry for expenses. 3 Record the closing entry for dividends. a-1. Calculate the return on equity for the month of January. Answer is complete but not entirely correct. Choose Numerator Return on Equity Ratio Choose Denominator Average Stockholders' Equity 158,700 Net Income Return on Equity Ratio Return on equity 28% 4,400 b. How many shares of common stock are outstanding as of January 31, 2021? Answer is complete but not entirely correct. Number of common stock outstanding 12,000 C-1. 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.) Answer is complete but not entirely correct. Earnings Per Share Choose Denominator Average Share Outstanding Chooso Numerator Earnings Por Share Earnings Por Share 0.37 Net Income 4.400 12,000