On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Credit Debit $ 43,100 Cash Accounts Receivable Supplies 45,300 7,900 68,000 Equipment. Accumulated Depreciation 9,400 15,000 Accounts Payable 14,000 Common Stock, $1 par value Paid-in Capital-Excess of Par Retained Earnings 84,000 41,900 Totals $164,300 $164,300 During January 2021, the following transactions occur: January 2 Issue an additional 2,100 shares of $1 par value common stock for January 9 Provide services to customers on account, $15,300. 42,000. January 10 Purchase additional supplies on account, $5,300. January 12 Repurchase 1,100 shares of treasury stock for $19 per share. January 15 Pay cash on accounts payable, $16,900. January 21 Provide services to customers for cash, $49,500. January 22 Receive cash on accounts receivable, $17,000. 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: Freedom Fireworks had 14,000 shares outstanding on January 1, 2021, 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, $42,400. The following information is available on January 31, 2021. 1. Unpaid utilities for the month of January are $6,600. 2. Supplies at the end of January total $5,500. 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 $10,400. 4. Accrued income taxes at the end of January are $2,400. $ General General Requirement Trial Balance Income Statement Balance Sheet Journal Ledger Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 7 8 16 > ... Issue an additional 2,100 shares of $1 par value common stock for $40,000. Note: Enter debits before credits. Date Account Title Debit Credit Jan 02 Cash Common stock Paid-in capital-excess of par 40,000 2,100 37,900 On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Credit Debit $ 43,100 Cash Accounts Receivable Supplies 45,300 7,900 68,000 Equipment. Accumulated Depreciation 9,400 15,000 Accounts Payable 14,000 Common Stock, $1 par value Paid-in Capital-Excess of Par Retained Earnings 84,000 41,900 Totals $164,300 $164,300 During January 2021, the following transactions occur: January 2 Issue an additional 2,100 shares of $1 par value common stock for January 9 Provide services to customers on account, $15,300. 42,000. January 10 Purchase additional supplies on account, $5,300. January 12 Repurchase 1,100 shares of treasury stock for $19 per share. January 15 Pay cash on accounts payable, $16,900. January 21 Provide services to customers for cash, $49,500. January 22 Receive cash on accounts receivable, $17,000. 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: Freedom Fireworks had 14,000 shares outstanding on January 1, 2021, 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, $42,400. The following information is available on January 31, 2021. 1. Unpaid utilities for the month of January are $6,600. 2. Supplies at the end of January total $5,500. 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 $10,400. 4. Accrued income taxes at the end of January are $2,400. $ General General Requirement Trial Balance Income Statement Balance Sheet Journal Ledger Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 7 8 16 > ... Issue an additional 2,100 shares of $1 par value common stock for $40,000. Note: Enter debits before credits. Date Account Title Debit Credit Jan 02 Cash Common stock Paid-in capital-excess of par 40,000 2,100 37,900
Expert Answer:
Answer rating: 100% (QA)
General Journal Date Jan 1 General Journal Cash Common Stoc... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2018, the general ledger of Freedom Fireworks includes the following account balances: During January 2018, the following transactions occur: Borrow $100,000 from Captive Credit...
-
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: During January 2021, the following transactions occur: January 2 Issue an additional 2,000 shares...
-
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: During January 2021, the following transactions occur: January 1 Borrow $100,000 from Captive...
-
Nanette works for Piroz and is paid a basic wage of $1,000 a week. Piroz operates the following bonus scheme: (1) Each employee gets a bonus of $4 for every unit they produce in excess of 2,000 units...
-
On September 1, 2010, Carolina Electronics Company has ready for sale 1,000 CD players. On October 1, 2010, 900 are sold at $50 each with a one-year warranty. Carolina estimates that the warranty...
-
Ten molecules start inside a cell. They are first observed outside the cell in the given second. Molecule Time First Observed Outside 1 ...................................... 11 2...
-
Search popular business magazines (Business Week, Fortune, Forbes) for an article that describes a dysfunctional behavior resulting from a poorly designed manager ial reporting and performance...
-
Can Gillette ever become as successful at marketing to women? Why or why not?
-
A corporation in 2018 expects a gross income of $625,000, total operating expenses of $450,000, and capital investments of $11,000. In addition the corporation is able to declare $63,000 of...
-
Dakota Company experienced the following events during Year 2: 1. Acquired $20,000 cash from the issue of common stock. 2. Paid $22,500 cash to purchase land. 3. Borrowed $8,000 cash. 4. Provided...
-
You are an auditor on the Curasafe (CS) Limited engagement for the financial year ending 30 June 2017. CS is a large Australian private health insurer that also provides a range of complementary...
-
8 Using the Black-Scholes formulation, compute the value of an option that expires in one year (T = 1) if the following facts apply. K = $40 exercise price S = $45 stock price now K r = 1.20 (r =...
-
You have decided to denote a new racing shell to BU crew 7 years from today. The boat builder has offered to allow you to pay the shell in 5 annual payments of $12,000 and the payments will begin 7...
-
QUESTION 8 Every month, you will be depositing $100 into an account for a year starting today. If you ended up having $1300 after the 12 deposits, what periodic interest rate was earned? Write your...
-
(a) Calculate the ratios of longitudinal modulus of the composite to the matrix modulus for glass-epoxy and carbon-epoxy composites with 10% and 50% fibers by volume. The elastic moduli of glass...
-
Four years ago Sofia's Hoop Jam Inc. realized a 34% EPS increase on 11% increase in sales. During that timeframe, we figured out that her DOL was at 1.5. What was the company's degree of financial...
-
9. Suppose we have a processor with a base CPI of 1, assuming all references hit in the primary cache. Consider a two-level cache, where the miss rates per instruction at the primary cache and the...
-
Test whether the 5-year survival rate for breast cancer is significantly different between African American and Caucasian women who are younger than 50 years of age and have localized disease....
-
McWherter Instruments sold $400 million of 8% bonds, dated January 1, on January 1, 2021. The bonds mature on December 31, 2040 (20 years). For bonds of similar risk and maturity, the market yield...
-
What is a proxy statement? What information does it provide?
-
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to...
-
The diagram below represents the lubrication system of a machine; the lubricant flows from a source area at node 1 , through components \(2-6\), which require lubrication, and collects at node 7 ....
-
The graph of Exercise 15 of Section 1.2 modeling a forced-air heat distribution system is displayed again below, with one additional edge. This time we suppose the fully connected system exists and...
-
Let the intermediate nodes on the graph of Exercise 1 represent switching locations at a busy train station located at node 5 , to which trains are arriving from node 1. The edge capacities represent...
Study smarter with the SolutionInn App