See the next tab for the beginning trial balance.
On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances:
January 2 Issue and additional 2,000 shares of $1 par value common stock for $40,000.
January 9 Provide services to customers on account, $14,300.
January 10 Purchase additional supplies on account, $4,900.
January 12 Purchase 1,000 shares of treasury stock for $18 per share.
January 15 Pay cash on accounts payable, $16,500.
January 21 Provide services to customers for cash, $49,100.
January 22 Receive cash on accounts receivable, $16,600.
Declare a cash dividend of $0.30 per share to all shares outstanding on January 29 . The dividend is payable on February 15 . (Hint: C
January 29 Fireworks had 10,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.)
January 30 Resell 600 shares of treasury stock for $20 per share.
January 31 Pay cash for salaries during January, $42,000
Required
1 Record each of the transactions listed in the general journal and post to the general ledger.
2 Record adjusting entries on January 31 in the general journal and post to the general ledger.
a. Unpaid Utilities for the month of January are $6,200.
b. Supplies at the end of January total $5,100.
Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment w
c. purchased, the company estimated a service life of three years and a residual value of $10,000.
d. Accrued income taxes at the end of January are $2,000
3 Prepare an adjusted trial balance as of January 31, 2024. The worksheet provided satisfies this requirement.
4 Prepare a multi-step income statement for the period ended January 31, 2024.
5 Prepare a statement of stockholders equity for the period ended January 31, 2024.
6 Prepare a classified balance sheet as of January 31, 2024.
7 Record the closing entries on January 31 in the general journal and post to the general ledger.
8 Prepare a post-closing trial balance (Cathy Added)
9 Analyze the following for Grand Finale Fireworks:
Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.5%, is the ।
a. more or less profitable than other companies in the same industry?
b. How many shares of common stock are outstanding as of January 31,2024 ?
Calculate earnings per share for the month of January. (Hint: To calculate average shares of common stock outstanding take the b shares outstanding plus the ending shares outstanding and divide the total by 2.) If earnings per share was $3.60 last year (i.e., an a)
c. $.30 per month), is earnings per share for January 2024 better or worse than last year's average?