question 5 med chp 18
4. Accrued income taxes at the end of January are $2,700. Trial Balance Prepare an income statement for the period endeu Jaliuary 31,2024 . Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Prepare a classified balance sheet as of January 31, 2024. Choose the appropriate accounts to complete the company's balance sheet The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. h journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will ear for each account, based on your selection. General Ledger Account Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. epare the journal entries for transactions. te: If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field. On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: During January 2024, the following transactions occur: January 2 Issue an additional 2,100 shares of $1 par value common stock for $42,000. January 9 Provide services to customers on account, $16,700. January 10 Purchase additional supplies on account, $5,600. January 12 Repurchase 1,000 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $17,200. January 21 Provide services to customers for cash, $49,800. January 22 Receive cash on accounts receivable, $17,300. January 29 Declare a cash dividend of $0.20 per share to all shares outstanding on January 29 . The dividend is payable on February 15. (Hint: Freedom Fireworks had 17,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) January 30 Reissue 800 shares of treasury stock for $22 per share. January 31 Pay cash for salaries during January, $42,700. The following information is available on January 31, 2024. 1. Unpaid utilities for the month of January are $6,900. 2. Supplies at the end of January total $5,800. 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 $10,700. 4. Accrued income taxes at the end of January are $2,700. Using the information from the requirements above, complete the 'Analysis'. Note: Round "Return on Equity" value to 1 decimal place and "Earnings per share" value to 2 decimal places. Analyze the following for Freedom Fireworks: a) Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.5%, is the company nore or less profitable than other companies in the same industry? The return on equity is: s the company more or less profitable than other companies? 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 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 $2.4 last year (i.e., an average of 0.2 per month), is earnings per share for January 2024 better or worse than last year's average? 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 110 ) assuming a FIFO perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31 in the 'General Journal' tab (these are shown as items 11-14). 3. Review the adjusted 'Trial Balance' as of January 31, 2024, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2024, in the 'Income statement' tab. 5. Prepare a classified balance sheet as of January 31, 2024, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 15 and 16). 7. Using the information from the requirements above, complete the 'Analysis' tab
