On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts
Question:
On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances:
| Accounts | Debit | Credit |
|---|---|---|
| Cash | $43,300 | |
| Accounts Receivable | 45,700 | |
| Supplies | 8,100 | |
| Equipment | 70,000 | |
| Accumulated Depreciation | $9,600 | |
| Accounts Payable | 15,200 | |
| Common Stock, $1 par value | 16,000 | |
| Additional Paid-in Capital | 86,000 | |
| Retained Earnings | 40,300 | |
| Totals | $167,100 | $167,100 |
During January 2024, 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, $16,100. |
| January 10 | Purchase additional supplies on account, $5,500. |
| January 12 | Purchase 1,300 shares of treasury stock for $19 per share. |
| January 15 | Pay cash on accounts payable, $17,100. |
| January 21 | Provide services to customers for cash, $49,700. |
| January 22 | Receive cash on accounts receivable, $17,200. |
| 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: Grand Finale Fireworks had 16,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) |
| January 30 | Resell 800 shares of treasury stock for $21 per share. |
| January 31 | Pay cash for salaries during January, $42,600. |
The following information is available on January 31, 2024.
- Unpaid utilities for the month of January are $6,800.
- Supplies at the end of January total $5,700.
- 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 $10,600.
- Accrued income taxes at the end of January are $2,600.
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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