Question

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

Accounts	Debit			Credit
Cash	$	43,800
Accounts Receivable		46,700
Supplies		8,600
Equipment		75,000
Accumulated Depreciation				$	10,100
Accounts Payable					15,700
Common Stock, $1 par value					11,000
Additional Paid-in Capital					91,000
Retained Earnings					46,300
Totals	$	174,100		$	174,100

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, $16,700.
January		10		Purchase additional supplies on account, $6,000.
January		12		Purchase 1,300 shares of treasury stock for $19 per share.
January		15		Pay cash on accounts payable, $17,600.
January		21		Provide services to customers for cash, $50,200.
January		22		Receive cash on accounts receivable, $17,700.
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 11,000 shares outstanding on January 1, 2021, 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, $43,100.

The following information is available on January 31, 2021.

1. Unpaid utilities for the month of January are $7,300.
2. Supplies at the end of January total $6,200.
3. 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 $11,100.
4. Accrued income taxes at the end of January are $2,200.

Please help me complete the general journal, income statement, balance sheet, and analysis please. Thank You!

Answer 1

Credit Calculation Grand Finale Fireworks Date Account Title 2-Jan Cash Common Stock, $1 par value Additional Paid-in Capital Debit 40,000 2,000 =2,000*1 38,000 16,700 9-Jan Accounts Receivable Service Revenue 16,700 6,000 10-Jan Supplies Accounts Payable 6,000 24,700 =1,300*19 12-Jan Treasury Stock Cash 24,700 17,600 15-Jan Accounts Payable Cash 17,600 50,200 21-Jan Cash Service Revenue 50,200 17,700 22-Jan Cash Accounts Receivable 17,700 3,510 =(11,000+2,000-1,300)*0.30 29-Jan Dividends Dividend Payable 3,510 16,800 30-Jan Cash Treasury Stock Paid in capital from Treasury Stock =800*21 15,200 =800*19 1,600 =16,800-15,200 43,100 43,100 31-Jan Salaries expense Cash Req 2 Adjusting entries 31-Jan Utilities expense Utilities Payable 7,300 7,300 8,400 =8,600+6,000-6,200 31-Jan Supplies expense Supplies 8,400 1,775 =(75,000-11,100)/3*1/12 31-Jan Depreciation expense Accmulated Depreciation 1,775 2,200 2,200 31-Jan Income tax expense Income tax Payable Req6 Closing entries 31-Jan Service Revenue Retained Earnings 66,900 66,900 62,775 31-Jan Retained Earnings Salaries expense Utilities expense Supplies expense Depreciation expense Income tax expense 43,100 7,300 8,400 1,775 2,200 3,510 31-Jan Retained Earnings Dividends 3,510

Date Credit Grand Finale Fireworks T Accounts Date Debit Date Credit Cash Op bal $ 43,800 12-Jan $ 24,700 2-Jan $ 40,000 15-Jan $ 17,600 21-Jan $ 50,200 31-Jan $ 43,100 22-Jan $ 17,700 30-Jan $ 16,800 Date Debit Date Credit Accounts Receivable Op bal $46,700 9-Jan $ 16,700 22-Jan $ 17,700 Date Debit Date Credit Supplies Op bal $ 8,600 10-Jan $ 6,000 31-Jan $ 8,400 Debit Date Equipment $ 75,000 Op bal Bal. Bal. Bal. $ 83,100 Accmulated Depreciation Op bal $10,100 31-Jan $ 1,775 Bal. $ 45,700 Accounts Payable 15-Jan $ 17,600 Op bal $15,700 10-Jan $ 6,000 $ 6,200 Dividend Payable 29-Jan $ 75,000 Utilities Payable 31-Jan $ 7,300 $ 3,510 $ 11,875 Income tax Payable 31-Jan $ 2,200 Bal. $ 4,100 Common Stock, $1 par value Op bal $11,000 2-Jan $ 2,000 Bal. $ 3,510 Additional paid in capital Op bal $ 91,000 2-Jan $ 38,000 $ 7,300 Paid in capital from Treasury Stock 30-Jan $ 1,600 $13,000 $ 129,000 Bal. $ 1,600 Bal. $ 2,200 Treasury Stock 12-Jan $ 24,700 30-Jan $ 15,200 Bal. Retained Earnings Op bal Bal. Dividends $ 3,510 $46,300 29-Jan Bal. Bal. $ 46,300 $ 9,500 Service Revenue 9-Jan $ 16,700 21-Jan $ 50,200 Salaries expense 31-Jan $ 43,100 Bal. $ 3,510 Utilities expense 31-Jan $ 7,300 Supplies expense 31-Jan $ 8,400 $ 66,900 Bal. $ 7,300 Bal. Bal. $ 8,400 Bal. Depreciation expense 31-Jan $ 1,775 Bal. $ 43,100 Income tax expense 31-Jan $ 2,200 Bal. $ 1,775 Bal. $ 2,200

Unadjusted TB Debit Credit 83,100 45,700 14,600 75,000 10,100 4,100 3,510 Grand Finale Fireworks Account Names Cash Accounts Receivable Supplies Equipment Accmulated Depreciation Accounts Payable Dividend Payable Utilities Payable Income tax Payable Common Stock, $1 par value Additional Paid-in Capital Paid in capital from Treasury Stock Treasury Stock Retained Earnings Dividends Service Revenue Salaries expense Utilities expense Supplies expense Depreciation expense Income tax expense Totals Req3 Adjusted TB Debit Credit 83,100 45,700 6,200 75,000 11,875 4,100 3,510 7,300 2,200 13,000 129,000 1,600 9,500 46,300 3,510 66,900 43,100 7,300 8,400 1,775 2,200 285,785 285,785 Post Closing TB Debit Credit 83,100 45,700 6,200 75,000 11,875 4,100 3,510 7,300 2,200 13,000 129,000 1,600 9,500 46,915 13,000 129,000 1,600 9,500 46,300 3,510 66,900 43,100 274,510 274,510 219,500 219,500

66,900 66,900 Grand Finale Fireworks Multistep Income Statement For the month ended Jan 31, 2021 Service Revenue Total Revenue Operating Expenses Salaries expense Utilities expense Supplies expense Depreciation expense Total Operating Expenses Net income before taxes Income tax expense Net income 43,100 7,300 8,400 1,775 60,575 6,325 2,200 4,125 Retained Earnings Statement For the month ended Jan 31, 2021 Retained Earnings, Jan 1, 2021 Add: Net income Less: Dividends Retained Earnings, Jan 31, 2021 46,300 4,125 (3,510) 46,915

Grand Finale Fireworks Balance Sheet As of Jan 31, 2021 Assets Current Assets Cash Accounts Receivable Supplies Total Current Assets 83,100 45,700 6.200 135,000 Property, Plant & Equipment Equipment Accumulated Depreciation Total Property, Plant & Equipment Total Assets 75,000 (11,875) 63,125 198,125 Liabilities & Stockholders Equity Current Liabilities Accounts Payable Dividend Payable Utilities Payable Income tax Payable Total Current Liabilities 4,100 3,510 7,300 2,200 17,110 13,000 129,000 1,600 Stockholders Equity Common Stock, $1 par value Additional Paid-in Capital Paid in capital from Treasury Stock Total Paid in Capital Retained Earnings Subtotal Less: Treasury Stock Total Stockholders Equity Total Liabilities & Stockholders Equity 143,600 46,915 190,515 (9,500) 181,015 198,125