Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[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:
[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 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 44,100 47,300 8,900 78,000 $ 10,400 16, 14,000 94,000 43,900 $178,300 $178,300 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, $18,200. January 10 Purchase additional supplies on account, $6,300. January 12 Purchase 1,100 shares of treasury stock for $21 per share. January 15 Pay cash on accounts payable, $17,900. January 21 Provide services to customers for cash, $50,500. January 22 Receive cash on accounts receivable, $18,000. 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 14,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 800 shares of treasury stock for $23 per share. January 31 Pay cash for salaries during January, $43,400. a. Unpaid utilities for the month of January are $7,600. b. Supplies at the end of January total $6,500.. 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 $11,400.. d. Accrued income taxes at the end of January are $2,500. 3. Prepare an adjusted trial balance as of January 31, 2021. Answer is complete but not entirely correct. Credit 12,250 4,400 4,470 2,500 7,600 GRAND FINALE FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Cash $ 86,600 Accounts Receivable 47,500 Supplies 6,500 Equipment 78,000 Accumulated Depreciation Accounts Payable Dividends Payable Income Tax Payable Utilities Payable Common Stock Additional Paid-in Capital Additional Paid-in Capital Treasury Stock 16,800 X Retained Earnings Dividends 4,470 Service Revenue Salaries Expense 43,400 Utilities Expense 7,600 Supplies Expense 8,700 Depreciation Expense 1,850 Income Tax Expense 2,500 Totals $ 301,420 $ 16,000 95,600 x 1,600 43,900 68,700 257,020 Answer is complete but not entirely correct. GRAND FINALE FIREWORKS Classified Balance Sheet January 31, 2021 Assets Liabilities Cash $ Accounts Receivable $ 86,600 Accounts Payable 47,500 Dividends Payable 6,500 Income Tax Payable Utilities Payable OOOO 4,400 4,470 2,500 7,600 Supplies 18,970 Total Current Liabilities Stockholders' Equity Common Stock Additional Paid-in Capital Retained Earnings 140,600 Treasury Stock 78,000 12,250 X Total Stockholders' Equity $ 230,850 Total Liabilities and Stockholders' Equity 16,000 133,600 44,080 6,300 Total Current Assets Equipment Less: Accumulated Depreciation 00 199,980 Total Assets $ 218,950 Journal entry worksheet Record the closing entry for revenue accounts. Note: Enter debits before credits. Date General Journal Debit Credit January 31, 2021 Record entry Clear entry View general journal Journal entry worksheet Record the closing entry for expense accounts. Note: Enter debits before credits. General Journal Debit Credit Date January 31, 2021 Journal entry worksheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started