Question

On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:
  

Accounts	Debit			Credit
Cash	$	43,600
Accounts Receivable		46,300
Supplies		8,400
Equipment		73,000
Accumulated Depreciation				$	9,900
Accounts Payable					15,500
Common Stock, $1 par value					19,000
Additional Paid-in Capital					89,000
Retained Earnings					37,900
Totals	$	171,300		$	171,300

  
During January 2018, the following transactions occur:

January 2 Issue an additional 2,100 shares of $1 par value common stock for $42,000.
January 9 Provide services to customers on account, $16,300.
January 10 Purchase additional supplies on account, $5,800.
January 12 Repurchase 1,200 shares of treasury stock for $22 per share.
January 15 Pay cash on accounts payable, $17,400.
January 21 Provide services to customers for cash, $50,000.
January 22 Receive cash on accounts receivable, $17,500.
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 19,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.)   
January 30 Reissue 700 shares of treasury stock for $24 per share.
January 31 Pay cash for salaries during January, $42,900.

1. Record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Record the adjusting entries on January 31, 2018 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. Unpaid utilities for the month of January are $7,100.
b. Supplies at the end of January total $6,000.
c. 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 $10,900.
d. Accrued income taxes at the end of January are $2,000.

3. Prepare an adjusted trial balance as of January 31, 2018.

4. Prepare a multiple-step income statement for the period ended January 31, 2018.

5. Prepare a classified balance sheet as of January 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

6. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

I only need help with parts 3,4,5,6

Answer 1

1. In the books of Grand Finale Fireworks:

Date	Account Titles	Debit	Credit
2018		$	$
Jan 2	Cash	42,000
	Common Stock		2,100
	Additional Paid-in Capital		39,900
Jan 9	Accounts Receivable	16,300
	Service Revenue		16,300
Jan 10	Supplies	5,800
	Accounts Payable		5,800
Jan 12	Treasury Stock	26,400
	Cash		26,400
Jan 15	Accounts Payable	17,400
	Cash		17,400
Jan 21	Cash	50,000
	Service Revenue		50,000
Jan 22	Cash	17,500
	Account Receivable		17,500
Jan 29	Dividends	7,960
	Dividends Payable		7,960
Jan 30	Cash	16,800
	Treasury Stock ( 700 x $ 22)		15,400
	Paid in Capital : Treasury Stock		1,400
Jan 31	Salaries Expense	42,900
	Cash		42,900

2. Adjusting Entries:

Adjustment	Account Titles	Debit	Credit
Jan 31, 2018		$	$
a.	Utilities Expense	7,100
	Accounts Payable		7,100
b.	Supplies Expense	8,200
	Supplies		8,200
c.	Depreciation Expense ( 73,000 - 10,900) / ( 3 x 12)	1,725
	Accumulated Depreciation :		1,725
d.	Income Tax Expense	2,000
	Income Taxes Payable		2,000

3.

Grand Finale Fireworks
Adjusted Trial Balance
January 31, 2018
Account Titles	Debit	Credit
	$	$
Cash	83,200
Accounts Receivable	45,100
Supplies	6,000
Equipment	73,000
Accumulated Depreciation		11,625
Accounts Payable		11,000
Income Taxes Payable		2,000
Dividends Payable		7,960
Common Stock		21,100
Additional Paid-in Capital		128,900
Dividends	7,960
Treasury Stock	11,000
Paid-in Capital : Treasury Stock		1,400
Retained Earnings		37,900
Service Revenue		66,300
Salaries Expense	42,900
Utilities Expense	7,100
Supplies Expense	8,200
Depreciation Expense	1,725
Income Tax Expense	2,000
Totals	$ 288,185	$ 288,185

4.

Grand Finale Fireworks
Income Statement
For the year ended January 31, 2018
	$	$
Service Revenue		66,300
Less: Expenses
Salaries Expense	42,900
Supplies Expense	8,200
Utilities Expense	7,100
Depreciation Expense	1,725
Total Expense		59,925
Income before Taxes		6,375
Income Tax Expense		2,000
Net Income		4,375