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: Grand Finale Fireworks had 10,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) January 29 Resell 600 shares of treasury stock for $20 per share. January 30 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 was 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.
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: Grand Finale Fireworks had 10,000 shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) January 29 Resell 600 shares of treasury stock for $20 per share. January 30 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 was 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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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