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In: Accounting

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

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

  Accounts Debit Credit
  Cash $ 44,600
  Accounts Receivable 48,300
  Supplies 9,400
  Equipment 83,000
  Accumulated Depreciation $ 10,900
  Accounts Payable 16,500
  Common Stock, $1 par value 19,000
  Additional Paid-in Capital 99,000
  Retained Earnings 39,900
       Totals $ 185,300 $ 185,300
During January 2018, the following transactions occur:
January 2 Issue an additional 2,200 shares of $1 par value common stock for $44,000.
January 9 Provide services to customers on account, $19,700.
January 10 Purchase additional supplies on account, $6,800.
January 12 Repurchase 1,000 shares of treasury stock for $22 per share.
January 15 Pay cash on accounts payable, $18,400.
January 21 Provide services to customers for cash, $51,000.
January 22 Receive cash on accounts receivable, $18,500.
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 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, $43,900.


The following information is available on January 31, 2018.

Unpaid utilities for the month of January are $8,100.

Supplies at the end of January total $7,000.

Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was p

Solutions

Expert Solution

Journal entries for the month of January.

Date Particulars Dr. $ Cr. $
Jan 02 Cash 44000
Common Stock 2200
Additional Paid in Capital 41800
Jan 09 Accounts Receivable 19700
Service Revenue 19700
Jan 10 Supplies 6800
Accounts Payable 6800
Jan 12 Treasury Stock 22000
Cash 22000
Jan 15 Accounts Payable 18400
Cash 18400
Jan 21 Cash 51000
Service Revenue 51000
Jan 22 Cash 18500
Accounts Receivable 18500
Jan 29 Dividend on Common Stock 6060
Dividend Payable 6060
(Dividend declared on 20,200 outstanding shares)
Jan 30 Cash 16800
Treasury Stock 15400
Additional paid in capital - Treasury Stock 1400
Jan 31 Salaries expense 43900
Cash 43900
Jan 31 Utilities Expense 8100
Accounts Payable 8100

**I think there was more information to be uploaded. Information for depreciation is also not given completely. Still as far I can solve, I have done it. Hopefully it will help you.
Any problem here to understand anything, feel free to ask. Thanks.

ekkarill92 answered 2 years ago
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