Question

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 43,500 46,100 8,300 72,000 $ 9,800 15,400 18,000 88,000 38,700 $169,900 $169,900 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, $16,800. January 10 Purchase additional supplies on account, $5,700. January 12 Purchase 1,100 shares of treasury stock for $21 per share. January 15 Pay cash on accounts payable, $17,300. January 21 Provide services to customers for cash, $49,900. January 22 Receive cash on accounts receivable, $17,400. 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 18,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 900 shares of treasury stock for $23 per share. January 31 Pay cash for salaries during January, $42,800.

Answer 1

23100 17300 42800 Bal Common Stock $1 par value Additional Paid in Capital Service Revenue Accounts Receivable Treasury Shares Additional Paid in Capital - Treasury Cash 43500 Treasury Shares 2000 Accounts Payable 38000 Salaries Expense 49900 17400 18900 1800 Bal 171500 88300 171500 Accounts Receivable 46100 Cash 16800 Bal Service Revenue 17400 Bal 45500 62900 62900 8100 Bal Accounts Payable Supplies 8300 Supplies Expense 5700 Bal 14000 5900 14000 Bal Equipment 72000 Bal 72000 72000 72000 Accumulated Depreciation Bal Bal 11500 Depreciation Expe 11500 9800 1700 11500

Cash Accounts Payable 1730o|Bal Supplies 10800 Utilities Expense 28100 15400 5700 7000 28100 Bal 5670 Dividend Payable Dividend 5670 5670 Bal 5670 2800 Income Tax Payable Income Tax Expen: 2800 2800 Bal | 2800 Common Stock $1 par value Bal Bal 20000|cash 20000 18000 2000 20000 Additional Paid in Capital Bal 126000 cash 126000 Bal 88000 38000 126000 Additional Paid in Capital - Treasury Cash 1800 1800 1800 1800 Bal Dividend Retained Earnings 567o|Bal Income Summary 37330 43000 38700 4300 Bal 43000 Cash Treasury Shares 2310o|Cash Bal 23100 18900 4200 23100