General Journal 2. Income Statement 3. Balance Sheet

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

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. General Journal

2. Income Statement

3. Balance Sheet

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education