Hi! Really need the required 9 (last requirement) thank you! 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 2Issue and additional 2,000 shares of $1 par value common stock for $40,000.Provide services to customers on account, $14,300.January 9January 10Purchase additional supplies on account, $4,900.January 12Purchase 1,000 shares of treasury stock for $18 per share.January 15Pay cash on accounts payable, $16,500.January 21Provide services to customers for cash, $49,100.January 22Receive 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: Grand FinaleFireworks had 10,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.)January 29Resell 600 shares of treasury stock for $20 per share.January 30January 31 Pay cash for salaries during January, $42,000Required1 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 wasc. 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 $2,0003 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 companya. 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 beginningshares outstanding plus the ending shares outstanding and divide the total by 2.) If earnings per share was $3.60 last year (i.e., an average ofc. $.30 per month), is earnings per share for January 2024 better or worse than last year's average? AssetsCurrent AssetsCash€Accounts receivableSuppliesTotal current assetsLong-term AssetsEquipmentLess: Accumulated Depreciation, EquipmentTotal Assets$$Grand Finale FireworksBalance SheetJanuary 31, 202483,90042,2005,100131,20064,00010,500184,700LiabilitiesCurrent liabilitiesAccounts PayableUtilities PayableDividends PayableIncome tax payableCommon StockAdditional Paid In CapitalRetained earningsTreasury StockTotal current liabilitiesStockholders' EquityTotal stockholders' equityTotal liabilities and stockholders' equity$$3,0006,2003,3002,00014,50012,000119,20046,200(7,200)170,200184,700

Return on equity: - Return on equity is the ratio that helps the company or business to determine…

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 company 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 beginning 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 average of c. $.30 per month), is earnings per share for January 2024 better or worse than last year's average?

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 company 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 beginning 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 average of c. $.30 per month), is earnings per share for January 2024 better or worse than last year's average?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

See similar textbooks

Similar questions

Spring Company is authorized to issue 500,000 shares of $2 par value common stock. In its first year, the company has the following transactions: Journalize the transactions and calculate how many shares of stock are outstanding at August 3.
Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Journalize the transactions and calculate how many shares of stock are outstanding at August 3.
Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
During 2012, Ponce Towers issued 30,000 additional shares of common stock on June 1 and 24,000 on November 1. The company earned 602,000 from continuing operations and 28,000 from another segment of the business that was discontinued during the year. Use your completed worksheet to prepare a computation of earnings per share for 2012. Erase any data in the Data Section that are not required for 2012. Save the solution for 2012 as EPS3 and print the results.
Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.
Prepare the stockholders equity section of the balance sheet based on the following account balances: Common stock, 2 par, 60,000 shares 120,000 Preferred stock, 10 par, 5%, 4,000 shares 40,000 Common stock subscribed, 2 par, 3,000 shares 6,000 Retained earnings 17,000 The answers to the Self-Study Test Questions are at the end of the chapter (pages 811812).
Stockholders' Equity section of balance sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Prepare the Stockholders Equity section of the balance sheet as of June 30. Eighty thousand shares of common stock are authorized, and 9,000 shares have been reacquired.
Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.
James Incorporated is authorized to issue 5,000,000 shares of $1 par value common stock. In its second year of business, the company has the following transactions: Journalize the transactions.
A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the transaction would include which of the following? A. debit of $4,000 to common stock B. credit of $20,000 to common stock C. credit of $40 to common stock D. debit of $20,000 to common stock