2. Record the adjusting entries on January 31, 2024 for the above transactions. (If no entry...

Transcribed Image Text:

2. Record the adjusting entries on January 31, 2024 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal 1 January 31 Utilities Expense Debit Credit 6,400 Accounts Payable 6,400 2 January 31 Supplies Expense 7,500 Supplies 7,500 3 January 31 Depreciation Expense 1,550 Accumulated Depreciation 1,550 4 January 31 Income Tax Expense Income Tax Payable 2,200 2,200 a. Unpaid utilities for the month of January are $6,400. b. Supplies at the end of January total $5,300. 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 $10,200. d. Accrued income taxes at the end of January are $2,200. 3. Prepare an adjusted trial balance as of January 31, 2024. On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances: Cash Accounts Receivable. Accounts Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 42,900 44,900 7,700 66,000 $9.200 14,800 12,000 82,000 43,500 $161,500 $161,500 During January 2024, the following transactions occur: January 2 Issue an additional 2,200 shares of $1 par value common stock for $44,000. January 9 Provide services to customers on account, $14,800. January 10 Purchase additional supplies on account, $5,100. January 12 Purchase 1,000 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $16,700. January 21 Provide services to customers for cash, $49, 300. January 22 Receive cash on accounts receivable, $16,800. 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 12,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) January 30 Resell 700 shares of treasury stock for $22 per share. January 31 Pay cash for salaries during January, $42,200. Accounts Cash Accounts Receivable Supplies Equipment GRAND FINALE FIREWORKS Accumulated Depreciation Accounts Payable Common Stock Additional Paid-in Capital Retained Earnings Adjusted Trial Balance January 31, 2024 Debit Credit $ 42,900x 44,900 7,700 66,000 9,200 14,800 x XX 12,000 82,000 43,500 2. Record the adjusting entries on January 31, 2024 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal 1 January 31 Utilities Expense Debit Credit 6,400 Accounts Payable 6,400 2 January 31 Supplies Expense 7,500 Supplies 7,500 3 January 31 Depreciation Expense 1,550 Accumulated Depreciation 1,550 4 January 31 Income Tax Expense Income Tax Payable 2,200 2,200 a. Unpaid utilities for the month of January are $6,400. b. Supplies at the end of January total $5,300. 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 $10,200. d. Accrued income taxes at the end of January are $2,200. 3. Prepare an adjusted trial balance as of January 31, 2024. On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances: Cash Accounts Receivable. Accounts Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 42,900 44,900 7,700 66,000 $9.200 14,800 12,000 82,000 43,500 $161,500 $161,500 During January 2024, the following transactions occur: January 2 Issue an additional 2,200 shares of $1 par value common stock for $44,000. January 9 Provide services to customers on account, $14,800. January 10 Purchase additional supplies on account, $5,100. January 12 Purchase 1,000 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $16,700. January 21 Provide services to customers for cash, $49, 300. January 22 Receive cash on accounts receivable, $16,800. 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 12,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) January 30 Resell 700 shares of treasury stock for $22 per share. January 31 Pay cash for salaries during January, $42,200. Accounts Cash Accounts Receivable Supplies Equipment GRAND FINALE FIREWORKS Accumulated Depreciation Accounts Payable Common Stock Additional Paid-in Capital Retained Earnings Adjusted Trial Balance January 31, 2024 Debit Credit $ 42,900x 44,900 7,700 66,000 9,200 14,800 x XX 12,000 82,000 43,500