Question

Record closing entry for REVENUE, Expenses and Dividends

Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, S1 par value Additional Paid-in Capital Retained Earnings Totals S 44,200 47,500 9,000 79,000 S 10,500 16,100 15,000 95,000 43.100 $179,700 $179,700 During January 2021, the following transactions occur: January 2 Issue an additional 2,200 shares of S1 par value common stock for $44,000. January 9 Provide services to customers on account, $18,300. January 10 Purchase additional supplies on account, $6,400. January 12 Purchase 1,000 shares of treasury stock for $22 per share. January 15 Pay cash on accounts payable, $18,000. January 21 Provide services to customers for cash. $50,600. January 22 Receive cash on accounts receivable, $18,100. 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 15,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 900 shares of treasury stock for S24 per share. January 31 Pay cash for salaries during January, $43,500. The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $7.700. b. Supplies at the end of January total $6,600. c. 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 $11,500. d. Accrued income taxes at the end of January are $2,600. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet < ..... @ @ @ @ 15 Record the closing entry for revenue.

Answer 1

Grand Finale Fireworks Journal Enteries Date Particulars 2.1.2021 Cash a/c Dr. To Common Stock To Paid in Capital in excess of par (Additional capital issued) Debit in $ Credit in $ 44000 2200 41800 18300 9.1.2021 Accounts Receivable a/c Dr. To Service Revenue (Service provided on account) 18300 6400 10.1.2021 Supplies a/c Dr. To Accounts Payable (Supplies purchased on account) 6400 22000 12.1.2021 Treasury Shares a/c Dr. To Cash (Treasury shares purchased) 1000 x 22 22000 18000 15.1.2021 Accounts Payable a/c Dr,. To Cash (Accounts Payable paid off) 18000 50600 21.1.2021 Cash a/c Dr. To Service Revenue (Service provided in cash) 50600 Dr. 18100 22.1.2021 Cash a/c To Accounts Receivable (Cash received from debtors) 18100 29.1.2021 Dividend a/c Dr. 4860 To Dividend Payable (Dividend declared) (15000+2200-1000) x 0.3 4860 Dr. 30.1.2021 Cash a/c 21600 To Treasury Stock 19800 To Paid in Capital in excess of par 1800 (Treasury shares reissued) 900 x 24 = 21600; 900 x 22 = 19800 Dr. 43500 31.1.2021 Salaries Expense a/c To Cash (Salaries paid in cash) 43500

Adjusting Enteries Date Particulars 31.1.2021 Utilities Expense a/c To Accounts Payable (Expenses accrued) Dr. Debit in $ Credit in $ 7700 7700 8800 31.1.2021 Supplies Expense a/c Dr. To Supplies (Supplies expensed) 9000+6400-6600 8800 1875 1875 31.1.2021 Depreciation Expense - Equip a/c Dr. To Accum. Depre - Equip (Depreciation charged to Equip) (79000-11500)/( 12 x 3) Dr. 2600 31.1.2021 Income Tax Expense a/c To Income Tax Payable (Income Tax accrued) 2600 Closing Enteries Date Particulars 31.1.2021 Income Summary a/c Dr. To Salaries Expense To Utilities Expense To Supplies Expense To Depreciation Expense - Equip To Income Tax Expense (Expense accounts closed) Debit in $ Credit in $ 64475 43500 7700 8800 1875 2600 Dr. 68900 31.1.2021 Service Revenue a/c To Income Summary (Revenue accounts closed 68900 Dr. 4425 31.1.2021 Income Summary a/c To Retained Earnings (Profits Transferred) 4425 Dr. 4860 31.1.2021 Retained Earnings a/c To Dividends (Dividends charged) 4860

Trial Balance For the period ending 31.1.2021 Particulars Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Dividend Payable Income Tax Payable Common Stock $1 par value Additional Paid in Capital Additional Paid in Capital - Treasury Retained Earnings Treasury Shares Dividend Service Revenue Salaries Expense Utilities Expense Supplies Expense Depreciation Expense - Equip Income Tax Expense Totals Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 94300 94300 46300 46300 14700 8800 5900 72000 72000 9800 1875 11675 3800 7700 11500 4860 4860 2600 2600 20200 20200 129800 129800 1800 1800 38700 38700 2200 2200 4860 4860 68900 68900 43500 43500 7700 7700 8800 8800 1875 1875 2600 2600 277860 277860 20975 20975 290035 290035 Statement of Income For the period ending 31.1.2021 Service Revenue 68900 Salaries Expense Utilities Expense Supplies Expense Depreciation Expense - Equip 43500 7700 8800 1875 61875 7025 -2600 4425 Income Tax Expense Net Income Statement of Retained Earnings For the period ending 31.1.2021 Beginning Net Income 38700 4425 43125 -4860 38265 Dividend

Amounts in $ Amounts in $ Balance sheet As at 31.1.2021 Assets Current Assets Cash Accounts Receivable Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 94300 Accounts Payable 46300 Dividend Payable 5900 146500 Income Tax Payable 11500 4860 2600 18960 Non Current Assets Equipment Accumulated Depreciatioi Total Assets Share holders Equity Common Stock $1 par value Additional Paid in Capital Additional Paid in Capital - Treasury Retained Earnings 60325 Treasury Shares 206825 Total Liabilities & Equity 20200 129800 1800 38265 -2200 72000 -11675 187865 206825 Return on Equity = Net Income / Total Equity = 4425 / (15000 + 95000 + 43100 + 187865)/2 = 4425 / 170483 = 2.60% The Company is more profitable than other companies Number of shares outstanding = 15000+2200- 1000 + 900 = 17100 Earning per share = 4375 / (15000 + 17100)/2 = 4375 / 16050 = $0.273 Grand Final Fireworks has better EPS this year