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Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following
Required information
[The following information applies to the questions displayed below.]
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 44,500 | ||||
Accounts Receivable | 48,100 | |||||
Supplies | 9,300 | |||||
Equipment | 82,000 | |||||
Accumulated Depreciation | $ | 10,800 | ||||
Accounts Payable | 16,400 | |||||
Common Stock, $1 par value | 18,000 | |||||
Additional Paid-in Capital | 98,000 | |||||
Retained Earnings | 40,700 | |||||
Totals | $ | 183,900 | $ | 183,900 | ||
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, $19,500. | ||
January | 10 | Purchase additional supplies on account, $6,700. | ||
January | 12 | Purchase 1,200 shares of treasury stock for $21 per share. | ||
January | 15 | Pay cash on accounts payable, $18,300. | ||
January | 21 | Provide services to customers for cash, $50,900. | ||
January | 22 | Receive cash on accounts receivable, $18,400. | ||
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 18,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) | ||
January | 30 | Resell 600 shares of treasury stock for $23 per share. | ||
January | 31 | Pay cash for salaries during January, $43,800. |
- Unpaid utilities for the month of January are $8,000.
- Supplies at the end of January total $6,900..
- 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 $11,800..
- Accrued income taxes at the end of January are $2,900.
3. Prepare an adjusted trial balance as of January 31, 2021.
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