Question

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Debit Credit Accounts $44,400 47,900 9,200 81,000 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings $ 10,700 16,300 17,000 97,000 41,500 $182,500 $182,500 Totals During January 2021, the following transactions occur: 2 Issue an additional 2,100 shares of $1 par value common stock for $42,000. 9 Provide services to customers on account, $19,300. January January January 10 Purchase additional supplies on account, $6, 600. January 12 Purchase 1,200 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $18,200 January 21 Provide services to customers for cash, $50,800. January 22 Receive cash on accounts receivable, $18,300. January 29 Declare a cash dividend of $0.20 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 17,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 500 shares of treasury stock for $22 per share. January 31 Pay cash for salaries during January, $43,700 The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $7,900 b. Supplies at the end of January total $6,800. 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 $11,700 d. Accrued income taxes at the end of January are $2,800.
PLease help. I don't understand how to do this. don't know what i am doing.

Answer 1

Journal Entries Account Title and Explaination Credit Date Post. Debit Ref. $ Cash $ Jan.2 42,000.00 Common Stock (2100x$1) Additional Paid In Capital 2,100.00 $ 39,900.00 |(To record issue of common stock) Accounts Receivable Jan.9 19,300.00 Service Revenue 19,300.00 |(To record service provided on account) Jan. 10 Supplies 6,600.00 Accounts Payable (To record supplies purchased on account) 6,600.00 Treasury Stock (1200x$20) $ Jan. 12 24,000.00 Cash $ 24,000.00 (To record Treasury Stock purchased) Accounts Payable Jan. 15 18,200.00 Cash 18,200.00 (To record payment of payables)

Cash $ 50,800.00 Jan.21 Service Revenue 50,800.00 |(To record cash received for service provided) Cash Jan.22 18,300.00 Accounts Receivable $ 18,300.00 (To record collection of receivable) Dividends (17000+2100-1200)x$0.20 Retained Earnings (To record declaration of dividends) Jan.29 3,580.00 3,580.00 Cash (500 x $22) Jan.30 11.000.00 Treasury Stock (500x$20) Additional Paid In Capital 10,000.00 $ 1,000.00 |(To record sale of treasury stock) Salaries Expense $ Jan.31 43,700.00 Cash 43,700.00 (To record payment of Salaries Expense)

Adjusting Entries Utilities Expense $ 7,900.00 а Utilities Payable 7,900.00 (To record Utilities Expense) Supplies Expense ($9200 $6600-$6800) Supplies (To record Consumption of supplies) b 9,000.00 $ 9,000.00 Depreciation Expense (S81000-$11700)/3yrsx1/12) Accumulated Depreciation (To record Depreciation Expense for January month) 1,925.00 C $ 1,925.00 Income Tax Expense 2,800.00 Income Tax Payable 2,800.00 (Тo record incсоme tax expense)