Question

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	42,800
Accounts Receivable		44,700
Supplies		7,600
Equipment		65,000
Accumulated Depreciation				$	9,100
Accounts Payable					14,700
Common Stock, $1 par value					11,000
Additional Paid-in Capital					81,000
Retained Earnings					44,300
Totals	$	160,100		$	160,100

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, $14,000.
January		10		Purchase additional supplies on account, $5,000.
January		12		Purchase 1,100 shares of treasury stock for $19 per share.
January		15		Pay cash on accounts payable, $16,600.
January		21		Provide services to customers for cash, $49,200.
January		22		Receive cash on accounts receivable, $16,700.
January		29		Declare a cash dividend of $0.40 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 11,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.)
January		30		Resell 800 shares of treasury stock for $21 per share.
January		31		Pay cash for salaries during January, $42,100.

The following information is available on January 31, 2021.

1. Unpaid utilities for the month of January are $6,300.
2. Supplies at the end of January total $5,200.
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 $10,100.
4. Accrued income taxes at the end of January are $2,100.

journal entry worksheet

1-Record issuance of an additional 2,000 shares of $1 par value common stock for $40,000.

2-Record the providing of services to customers on account, $14,000.

3-Record purchase of additional supplies on account, $5,000.

4-Record purchase of 1,100 shares of treasury stock for $19 per share.

5-Record payment of cash on accounts payable, $16,600.

6-Record the providing of services to customers for cash, $49,200.

7-Record the receipt of cash on accounts receivable, $16,700

8-Record the declaration of a cash dividend of $0.40 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 11,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.)

9-Record the reselling of 800 shares of treasury stock for $21 per share.

10-Record the payment of cash for salaries during January, $42,100.

11-Unpaid utilities for the month of January are $6,300. Prepare the adjusting entry for utilities

12-Supplies at the end of January total $5,200. Prepare the adjusting entry for supplies

13-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 $10,100. Prepare the adjusting entry for depreciation.

14-Accrued income taxes at the end of January are $2,100. Prepare the adjusting entry for income taxes.

15-Record the closing entry for revenue.

16-Record the closing entry for expenses.

17-Record the closing entry for dividends.

Answer 1

Recording Journal Entries

Date	Account Tittle	Debit	Credit
Jan.2	Cash	$40,000
	Common Stock		$2,000
	Paid in Capital		$38,000
Jan.9	Account Receivable	$14,000
	Service Revenue		$14,000
Jan.10	Supplies	$5,000
	Account Payable		$5,000
Jan.12	Treasury Stock	$20,900
	Cash		$20,900
Jan.15	Account Payable	$16,600
	Cash		$16,600
Jan.21	Cash	$49,200
	Service Revenue		$49,200
Jan.22	Cash	$16,700
	Account Receivable		$16,700
Jan.29	Dividend	$4,760
	Dividend Payable		$4,760
Jan.30	Cash	$16,800
	Treasury Stock		$15,200
	Gain on Sale of treasury stock		$1,600
Jan.31	Salaries expense
	Cash

Adjusting Entries:
Date	Account Tittle	Debit	Credit
Jan.31	Utilities Expense	$6,300
	Utility Expense Payable		$6,300
Jan.31	Supplies Expense	$7,400
	Supplies		$7,400
Jan.31	Depreciation Expense	$18,300
	Accumulated Depreciation- Equipment		$18,300
Jan.31	Income Tax Expense	$2,100
	Income Tax Payable		$2,100
Closing Entries:
Jan.31	Service Revenue	$63,200
	Other Revenue (gain)	$1,600
	Income Summary		$64,800
Jan.31	Income Summary	$34,100
	Utilities Expense		$6,300
	Supplies Expense		$7,400
	Depreciation Expense		$18,300
	Income Tax Expense		$2,100
Jan.31	Retained Earning	$4,760
	Dividend		$4,760