Question

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 43,500 46,100 8,300 72,000 $ 9,800 15,400 18,000 88,000 38,700 $169,900 $169,900 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, $16,800. January 10 Purchase additional supplies on account, $5,700. January 12 Purchase 1,100 shares of treasury stock for $21 per share. January 15 Pay cash on accounts payable, $17,300. January 21 Provide services to customers for cash, $49,900. January 22 Receive cash on accounts receivable, $17,400. 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 18,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 900 shares of treasury stock for $23 per share. January 31 Pay cash for salaries during January, $42,800.

Answer 1

X fx revenues C 4 A B D E Grand Finale Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 revenues service revenue $ 66,700 $ 66,700 total revenue operating expenses salaries expense $ 42,800 utilities expense $ 7,000 $ 8,100 supplies expense depreciation expense $ 1,700 total operating expenses $ 59,600 net operating income $ 7,100 less: income tax expense $ 2,800 net income $ 4,300

for formulas and calculations, refer to the image below -

- X revenues fx В Grand Finale Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 revenues service revenue =16800+49900 =D6 total revenue operating expenses salaries expense = 42800 utilities expense =7000 supplies expense =8300+5700-5900 depreciation expense =(72000-10800)/3/12 =SUM(C9:C12) total operating expenses net operating income =D7-D13 less: income tax expense 2800 net income =D14-D15

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