Question
[The following information applies to the questions displayed below.] On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:
[The following information applies to the questions displayed below.] On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 44,300 | ||||
Accounts Receivable | 47,700 | |||||
Supplies | 9,100 | |||||
Equipment | 80,000 | |||||
Accumulated Depreciation | $ | 10,600 | ||||
Accounts Payable | 16,200 | |||||
Common Stock, $1 par value | 16,000 | |||||
Additional Paid-in Capital | 96,000 | |||||
Retained Earnings | 42,300 | |||||
Totals | $ | 181,100 | $ | 181,100 | ||
|
During January 2018, 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, $18,800. January 10 Purchase additional supplies on account, $6,500. January 12 Repurchase 1,100 shares of treasury stock for $19 per share. January 15 Pay cash on accounts payable, $18,100. January 21 Provide services to customers for cash, $50,700. January 22 Receive cash on accounts receivable, $18,200. 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: Grand Finale Fireworks had 16,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.) January 30 Reissue 700 shares of treasury stock for $21 per share. January 31 Pay cash for salaries during January, $43,600.
4. Prepare a multiple-step income statement for the period ended January 31, 2018 GRAND FINALE FIREWORKS Multiple-Step Income Statement For the month ended January 31, 2018 Expenses Income before taxes 0 4. Prepare a multiple-step income statement for the period ended January 31, 2018 GRAND FINALE FIREWORKS Multiple-Step Income Statement For the month ended January 31, 2018 Expenses Income before taxes 0Step by Step Solution
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