Exercise 18-26 (Algo) General ledger exercise; Bonds; Installment note, early extinguishment [LO18-4, 18-5, 18-7]

On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	42,800
Accounts Receivable		44,700
Supplies		7,600
Equipment		65,000
Accumulated Depreciation				$	9,100
Accounts Payable					14,700
Common Stock, $1 par value					11,000
Paid-in Capital-Excess of Par					81,000
Retained Earnings					44,300
Totals	$	160,100		$	160,100

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, $14,000.
January		10		Purchase additional supplies on account, $5,000.
January		12		Repurchase 1,100 shares of treasury stock for $19 per share.
January		15		Pay cash on accounts payable, $16,600.
January		21		Provide services to customers for cash, $49,200.
January		22		Receive cash on accounts receivable, $16,700.
January		29		Declare a cash dividend of $0.40 per share to all shares outstanding on January 29. The dividend is payable on February 15.
				(Hint: Freedom Fireworks had 11,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.)
January		30		Resale 800 shares of treasury stock for $21 per share.
January		31		Pay cash for salaries during January, $42,100.

The following information is available on January 31, 2021.

1. Unpaid utilities for the month of January are $6,300.
2. Supplies at the end of January total $5,200.
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 $10,100.
4. Accrued income taxes at the end of January are $2,100.

Prepare an income statement for the period ended January 31, 2021. 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.

UnadjustedAdjustedPost-closing

Post-closing

Freedom Fireworks
Multiple-Step Income Statement
For the Month ended January 31, 2021
Total revenue		$0
Total operating expenses		0
		0
		$0