Question

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

Accounts	Debit			Credit
Cash	$	44,700
Accounts Receivable		48,500
Supplies		9,500
Equipment		84,000
Accumulated Depreciation				$	11,000
Accounts Payable					16,600
Common Stock, $1 par value					20,000
Additional Paid-in Capital					100,000
Retained Earnings					39,100
Totals	$	186,700		$	186,700

During January 2021, the following transactions occur:

January		2		Issue an additional 2,300 shares of $1 par value common stock for $46,000.
January		9		Provide services to customers on account, $20,400.
January		10		Purchase additional supplies on account, $6,900.
January		12		Purchase 1,100 shares of treasury stock for $19 per share.
January		15		Pay cash on accounts payable, $18,500.
January		21		Provide services to customers for cash, $51,100.
January		22		Receive cash on accounts receivable, $18,600.
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: Grand Finale Fireworks had 20,000 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, $44,000.

The following information is available on January 31, 2021.

1. Unpaid utilities for the month of January are $8,200.
2. Supplies at the end of January total $7,100.
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 the service life of three years and a residual value of $12,000.
4. Accrued income taxes at the end of January are $3,100.

This is the Journal entry I got (please verify). I am stuck on the income statement, balance sheet, and the analysis:

Credit Date Jan 02 Debit 46,000 Account Title Cash Common Stock Additional Paid-in Capital 2,300 43,700 Jan 31 8,200 Utilities Expense Utilities Payable 8,200 Jan 09 20,400 Accounts Receivable Service Revenue 20,400 Jan 31 2,400 Supplies Expense Supplies 2,400 Jan 10 6,900 Supplies Accounts Payable 6,900 Jan 31 2,000 Depreciation Expense Accumulated Depreciation 2,000 Jan 12 20.900 Treasury Stock Cash 20,900 Jan 31 3,100 Income Tax Expense Income Tax Payable 3.100 Jan 15 18,500 Accounts Payable Cash 18,500 15 Jan 31 71,500 Service Revenue Income Tax Expense 71,500 Jan 21 Cash 51,100 Service Revenue 51,100 16 Jan 31 66,600 Jan 22 18,600 Cash Accounts Receivable 18,600 Income Tax Expense Salaries Expense Utilities Expense Supplies Expense Depreciation Expense Income Tax Expense 44,000 8,200 9,300 2,000 3,100 Jan 29 4.240 Dividends Dividends Payable 4,240 17 Jan 31 4,240 Jan 30 16,800 Retained Earnings Dividends 4,240 Cash Treasury Stock Additional Paid-in Capital 15,200 1,600 Jan 31 Salaries Expense 44,000 Cash 44,000

Answer 1

In the books of Grand Finale Fireworks:

Date	Account Titles	Debit	Credit
		$	$
Jan 2	Cash	46,000
	Common Stock		2,300
	Additional Paid-in Capital		43,700
Jan 9	Accounts Receivable	20,400
	Service Revenue		20,400
Jan 10	Supplies	6,900
	Accounts Payable		6,900
Jan 12	Treasury Stock	20,900
	Cash		20,900
Jan 15	Accounts Payable	18,500
	Cash		18,500
Jan 21	Cash	51,100
	Service Revenue		51,100
Jan 22	Cash	18,600
	Accounts Receivable		18,600
Jan 29	Dividends	4,240
	Dividends Payable		4,240
Jan 30	Cash	16,800
	Treasury Stock		15,200
	Additional Paid-in Capital		1,600
Jan 31	Salaries Expense	44,000
	Cash		44,000
Adjusting Entries
Jan 31
a.	Utilities Expense	8,200
	Accounts Payable		8,200
b.	Supplies Expense	9,300
	Supplies		9,300
c.	Depreciation Expense	2,000
	Accumulated Depreciation		2,000
d.	Income Tax Expense	3,100
	Income Taxes Payable		3,100
Closing Entries
Jan 31
a.	Service Revenue	71,500
	Income Summary		71,500
b.	Income Summary	66,600
	Salaries Expense		44,000
	Supplies Expense		9,300
	Utilities Expense		8,200
	Depreciation Expense		2,000
	Income Tax Expense		3,100
c.	Income Summary	4,900
	Retained Earnings		4,900
d.	Retained Earnings	4,240
	Dividends		4,240

2.

Grand Finale Fireworks Income Statement For the month ended January 31, 2021
Revenues
Service Revenue		$ 71,500
Operating Expenses
Salaries Expense	44,000
Supplies Expense	9,300
Utilities Expense	8,200
Depreciation Expense	2,000
Total Operating Expenses		63,500
Income before Taxes		8,000
Income Tax Expense		3,100
Net Income		$ 4,900

3.

Grand Finale Fireworks Balance Sheet January 31, 2021
Assets
Current Assets
Cash	$ 93,800
Accounts Receivable	50,300
Supplies	7,100
Total Current Assets		$ 151,200
Property Plant and Equipment
Equipment, at cost	84,000
Accumulated Depreciation	(13000)
Property Plant and Equipment, net		71,000
Total Assets		$ 222,200
Liabilities
Current Liabilities
Accounts Payable	13,200
Incoe Taxes Payable	3,100
Dividends Payable	4,240
Total Current Liabilities		20,540
Long Term Liabilities		0
Total Liabilities		20,540
Stockholders' Equity
Common Stock	22,300
Additional Paid-in Capital	145,300
Retained Earnings	39,760
Treasury Stock, at cost	(5,700)
Total Stockholders' Equity		201,660
Total Liabilities and Stockholders' Equity		$ 222,200