On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:   Accounts Debit   Credit   Cash $ 44,100         Accounts Receivable   47,300         Supplies   8,900         Equipment   78,000         Accumulated Depreciation       $ 10,400   Accounts Payable         16,000   Common Stock, $1 par value         14,000   Additional Paid-in Capital         94,000   Retained Earnings         43,900   Totals $ 178,300   $ 178,300       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, $18,200. January   10   Purchase additional supplies on account, $6,300. January   12   Purchase 1,100 shares of treasury stock for $21 per share. January   15   Pay cash on accounts payable, $17,900. January   21   Provide services to customers for cash, $50,500. January   22   Receive cash on accounts receivable, $18,000. 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 14,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January   30   Resell 800 shares of treasury stock for $23 per share. January   31   Pay cash for salaries during January, $43,400. The following information is available on January 31, 2021. Unpaid utilities for the month of January are $7,600. Supplies at the end of January total $6,500. Depreciation on the equipment for the month of January is calculated using the straightline method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $11,400. Accrued income taxes at the end of January are $2,500   1 The return on equity is: 2 The number of common shares outstanding as of Jan 31, 2021 is . Earning per share is

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:

 

Accounts Debit   Credit  
Cash $ 44,100        
Accounts Receivable   47,300        
Supplies   8,900        
Equipment   78,000        
Accumulated Depreciation       $ 10,400  
Accounts Payable         16,000  
Common Stock, $1 par value         14,000  
Additional Paid-in Capital         94,000  
Retained Earnings         43,900  
Totals $ 178,300   $ 178,300  
 

 

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, $18,200.
January   10   Purchase additional supplies on account, $6,300.
January   12   Purchase 1,100 shares of treasury stock for $21 per share.
January   15   Pay cash on accounts payable, $17,900.
January   21   Provide services to customers for cash, $50,500.
January   22   Receive cash on accounts receivable, $18,000.
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 14,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.)
January   30   Resell 800 shares of treasury stock for $23 per share.
January   31   Pay cash for salaries during January, $43,400.


The following information is available on January 31, 2021.

  1. Unpaid utilities for the month of January are $7,600.
  2. Supplies at the end of January total $6,500.
  3. Depreciation on the equipment for the month of January is calculated using the straightline method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $11,400.
  4. Accrued income taxes at the end of January are $2,500

     

    1 The return on equity is:

    2 The number of common shares outstanding as of Jan 31, 2021 is

    . Earning per share is

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