xercise $10-17$A Complete the accounting cycle using stockholders' equity transactions $($LO$10-2,10-4,10-5,10-8)($GL$)$

On January $1,2021,$ the general ledger of Grand Finale Fireworks includes the following account balances:

Accounts Debit Credit

Cash $ $42,700$

Accounts Receivable $44,500$

Supplies $7,500$

Equipment $64,000$

Accumulated Depreciation $ $9,000$

Accounts Payable $14,600$

Common Stock, $$1$ par value $10,000$

Additional Paid$-$in Capital $80,000$

Retained Earnings $45,100$

Totals $ $158,700$ $ $158,700$

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, $$14,300.$

January $10$ Purchase additional supplies on account, $$4,900.$

January $12$ Purchase $1,000$ shares of treasury stock for $$18$ per share.

January $15$ Pay cash on accounts payable, $$16,500.$

January $21$ Provide services to customers for cash, $$49,100.$

January $22$ Receive cash on accounts receivable, $$16,600.$

January $29$ Declare a cash dividend of $$0\mathrm{.}30$ per share to all shares outstanding on January $29.$ The dividend is payable on February $15.($Hint: Grand Finale Fireworks had $10,000$ shares outstanding on January $1,2021,$ and dividends are not paid on treasury stock.$)$

January $30$ Resell $600$ shares of treasury stock for $$20$ per share.

January $31$ Pay cash for salaries during January, $$42,000.$

The following information is available on January $31,2021.$

Unpaid utilities for the month of January are $$6,200.$

Supplies at the end of January total $$5,100.$

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 $$10,000.$

Accrued income taxes at the end of January are $$2,000.$ Record; General Journal, General Ledger, Trial Balance, Income Statement, and Balance Sheet