Question

General General Income Balance Sheet Requirement Trial Balance Analysis Journal Ledger Statement Choose the appropriate accounts to complete the company's balance sheet. Make sure to select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Unadjusted Grand Finale Fireworks Classified Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Accounts Payable 50,300 Dividends Payable Utilities Payable Cash 93,800 5,000 4,240 Accounts Receivable 9,500 Supplies 0 Income Tax Payable Equipment 84,000 0 Accumulated Depreciation 11,000 9,240 Total Current Assets 248,600 Total Current Liabilities Noncurrent Assets: Stockholders' Equity Common Stock 22,300 Additional Paid-in Capital 145,300 Treasury Stock (5,700) Retained Earnings 55,460 Total Stockholders Equity Total Liabilities & Stockholders Equity 217,360 248,600 226,600 Total Assets Income Statement Analysis www.mn

Answer 1

Grand Finale Fireworks Journal Enteries Debit in $ Credit in $ Particulars Date 2.1.2021 Cash a/c Dr. 46000 To Common Stock 2300 To Paid in Capital in excess of par 43700 (Additional capital issued) 9.1.2021 Accounts Receivable a/c Dr,. 20400 To Service Revenue 20400 (Service provided on account) 10.1.2021 Supplies a/c Dr. 6900 To Accounts Payable 6900 (Supplies purchased on account) 12.1.2021 Treasury Shares a/c Dr. 20900 To Cash 20900 (Treasury shares purchased) 1100 x 19 15.1.2021 Accounts Payable a/c Dr,. 18500 To Cash 18500 |(Accounts Payable paid off) 21.1.2021 Cash a/c Dr. 51100 To Service Revenue 51100 |(Service provided in cash) 22.1.2021 Cash a/c Dr. 18600 To Accounts Receivable 18600 (Cash received from debtors) 29.1.2021 Dividend a/c Dr. 4240 To Dividend Payable 4240 (Dividend declared) (20000+2300-1100) x 0.2 30.1.2021 Cash a/c Dr. 16800 To Treasury Stock 15200 To Paid in Capital in excess of par 1600 (Treasury shares reissued) 31.1.2021 Salaries Expense a/c Dr. 44000 To Cash 44000 (Salaries paid in cash)

Adjusting Enteries Debit in $ Credit in $ Particulars Date 31.1.2021 Utilities Expense a/c Dr. 8200 To Accounts Payable 8200 (Expenses accrued) 31.1.2021 Supplies Expense a/c Dr. 9300 To Supplies 9300 (Supplies expensed) 9500+ 6900- 7100 31.1.2021 Depreciation Expense - Equip a/c Dr. 2000 To Accum. Depre - Equip 2000 (Depreciation charged to Equip) (84000-12000)/(12 x 3) 31.1.2021 Income Tax Expense a/c Dr. 3100 To Income Tax Payable 3100 (Income Tax accrued)

Trial Balance For the period ending 31.1.2021 Adjustments Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Unadjusted Adjusted Particulars Cash 93800 93800 Accounts Receivable 50300 50300 Supplies 16400 9300 7100 Equipment 84000 84000 Accumulated Depreciation 2000 11000 13000 Accounts Payable Dividend Payable 5000 8200 13200 4240 4240 Income Tax Payable 3100 3100 Common Stock $1 par value Additional Paid in Capital 22300 22300 143700 143700 Additional Paid in Capital Treasury 1600 1600 Retained Earnings 39100 39100 Treasury Shares 5700 5700 Dividend 4240 4240 71500 Service Revenue 71500 Salaries Expense 44000 44000 Utilities Expense 8200 8200 Supplies Expense 9300 9300 Depreciation Expense - Equip Income Tax Expense 2000 2000 3100 3100 Totals 298440 298440 22600 22600 311740 311740 Statement of Income For the period ending 31.1.2021 Service Revenue 71500 Salaries Expense 44000 Utilities Expense 8200 Supplies Expense 9300 63500 Depreciation Expense - Equip 2000 8000 Income Tax Expense -3100 Net Income 4900 Statement of Retained Earnings For the period ending 31.1.2021 Beginning 39100 Net Income 4900 44000 Dividend -4240 39760

Balance sheet As at 31.1.2021 Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Assets Current Liabilities Current Assets Accounts Payable Dividend Payable 151200 Income Tax Payable Cash 13200 93800 Accounts Receivable 50300 4240 Supplies 7100 3100 20540 Share holders Equity Common Stock $1 par value Additional Paid in Capital 22300 143700 Additional Paid in Capital Treasury No Assets 1600 Retained Earnings 39760 Equipment 84000 Accumulated Depreciatio 71000 Treasury Shares 222200 Total Liabilities & Equity -13000 -5700 201660 Total Assets 222200 Return on Equity Net Income Total Equity 4900/ (20000 100000 39100 201660)/2 =4900/180380 =2.72% The Company is more profitable than other companies Number of shares outstanding 20000 +2300- 1100+800 22000 Earning per share 4900 (20000 +22000) 2 4900/ 21000 =$0.233 Grand Final Fireworks has better EPS this year