On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances:...
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On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Debit $44,200 Credit Accounts Receivable 47,500 Supplies 9,000 Equipment 79,000 Accumulated Depreciation $10,500 Accounts Payable 16,100 Common Stock, $1 par value 15,000 Additional Paid-in Capital 95,000 Retained Earnings 43,100 Totals $179,700 $179,700 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, $18,300. January 10 Purchase additional supplies on account, $6,400. January 12 Purchase 1,000 shares of treasury stock for $22 per share. January 15 Pay cash on accounts payable, $18,000. January 21 Provide services to customers for cash, $50,600. January 22 Receive cash on accounts receivable, $18,100. 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 15,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) January 30 Resell 900 shares of treasury stock for $24 per share. January 31 Pay cash for salaries during January, $43,500. The following information is available on January 31, 2024. a. Unpaid utilities for the month of January are $7,700. b. Supplies at the end of January total $6,600. c. 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 $11,500. d. Accrued income taxes at the end of January are $2,600. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 10). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31. in the 'General Journal' tab (these are shown as items 11 to 14). 3. Review the adjusted 'Trial Balance' as of January 31, 2024, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2024, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2024, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 15 to 17). On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Debit $44,200 Credit Accounts Receivable 47,500 Supplies 9,000 Equipment 79,000 Accumulated Depreciation $10,500 Accounts Payable 16,100 Common Stock, $1 par value 15,000 Additional Paid-in Capital 95,000 Retained Earnings 43,100 Totals $179,700 $179,700 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, $18,300. January 10 Purchase additional supplies on account, $6,400. January 12 Purchase 1,000 shares of treasury stock for $22 per share. January 15 Pay cash on accounts payable, $18,000. January 21 Provide services to customers for cash, $50,600. January 22 Receive cash on accounts receivable, $18,100. 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 15,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) January 30 Resell 900 shares of treasury stock for $24 per share. January 31 Pay cash for salaries during January, $43,500. The following information is available on January 31, 2024. a. Unpaid utilities for the month of January are $7,700. b. Supplies at the end of January total $6,600. c. 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 $11,500. d. Accrued income taxes at the end of January are $2,600. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 10). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31. in the 'General Journal' tab (these are shown as items 11 to 14). 3. Review the adjusted 'Trial Balance' as of January 31, 2024, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2024, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2024, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 15 to 17).
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