In: Accounting
On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:
Accounts | Debit | Credit | ||||
Cash | $ | 43,500 | ||||
Accounts Receivable | 46,100 | |||||
Supplies | 8,300 | |||||
Equipment | 72,000 | |||||
Accumulated Depreciation | $ | 9,800 | ||||
Accounts Payable | 15,400 | |||||
Common Stock, $1 par value | 18,000 | |||||
Additional Paid-in Capital | 88,000 | |||||
Retained Earnings | 38,700 | |||||
Totals | $ | 169,900 | $ | 169,900 | ||
During January 2018, 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 | Repurchase 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, 2018 and dividends are not paid on treasury stock.) |
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January 30 | Reissue 900 shares of treasury stock for $23 per share. |
January 31 | Pay cash for salaries during January, $42,800. |
The following information is available on January 31, 2018.
1. Prepare the closing journal entries for revenue, expenses, and dividends.
2. Prepare the income statement and balance sheet.
3. And complete the analysis below:
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