Question

Can you help me fix the question i got wrong, and the income balance. thank you!!!

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: 100 points Skipped Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 43,600 46,300 8,400 73,000 $ 9,900 15,500 19.00 89.000 37,900 $171,300 $171,380 eBook Print During January 2021, the following transactions occur References January 2 Issue an additional 2,100 shares of $1 par value common stock for $42,000. January 9 Provide services to customers on account. $16,300. January 10 Purchase additional supplies on account, $5,800. January 12 Purchase 1,200 shares of treasury stock for $22 per share. January 15 Pay cash on accounts payable, $17,400. January 21 Provide services to customers for cash, $50,000. January 22 Receive cash on accounts receivable, $17,500. 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 19,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 700 shares of treasury stock for $24 per share. January 31 Pay cash for salaries during January, $42,900. The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $7100. b. Supplies at the end of January total $6,000. 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 $10,900. d. Accrued income taxes at the end of January are $2,000.

Answer 1

Credit Calculation Grand Finale Fireworks Date Account Title 2-Jan Cash Common Stock, $1 par value Additional Paid-in Capital Debit 42,000 2,100 =2,100*1 39,900 16,300 9-Jan Accounts Receivable Service Revenue 16,300 5,800 10-Jan Supplies Accounts Payable 5,800 26,400 =1,200*22 12-Jan Treasury Stock Cash 26,400 17,400 15-Jan Accounts Payable Cash 17,400 50,000 21-Jan Cash Service Revenue 50,000 17,500 22-Jan Cash Accounts Receivable 17,500 7,960 (19000+2100-1200) *0.4 29-Jan Dividends Dividend Payable 7,960 16,800 30-Jan Cash Treasury Stock Paid in capital from Treasury Stock =700*24 =700*22 15,400 1,400 42,900 42,900 31-Jan Salaries expense Cash Req 2 Adjusting entries 31-Jan Utilities expense Utilities Payable 7,100 7,100 8,200 8400+5800-6000 31-Jan Supplies expense Supplies 8,200 1,725 (73000-10900)/3*1/12 31-Jan Depreciation expense Accmulated Depreciation 1,725 2,000 2,000 31-Jan Income tax expense Income tax Payable Reg 6 Closing entries Date Account Title 31-Jan Service Revenue Retained Earnings Credit Calculation Debit 66,300 66,300 61,925 31-Jan Retained Earnings Salaries expense Utilities expense Supplies expense Depreciation expense Income tax expense 42,900 7,100 8,200 1,725 2,000 7,960 31-Jan Retained Earnings Dividends 7,960

Date Credit Grand Finale Fireworks T Accounts Date Debit Date Credit Cash Op bal $ 43,600 12-Jan $ 26,400 2-Jan $ 42,000 15-Jan $ 17,400 21-Jan $ 50,000 31-Jan $ 42,900 22-Jan $ 17,500 30-Jan $ 16,800 Date Debit Date Credit Accounts Receivable Op bal $46,300 9-Jan $ 16,300 22-Jan $ 17,500 Date Debit Date Credit Supplies Op bal $ 8,400 10-Jan $ 5,800 31-Jan $ 8,200 Debit Date Equipment $ 73,000 Op bal Bal. Bal. Bal. $ 83,200 Accmulated Depreciation Op bal $ 9,900 31-Jan $ 1,725 Bal. $ 45,100 Accounts Payable 15-Jan $ 17,400 Op bal $15,500 10-Jan $ 5,800 $ 6,000 Dividend Payable 29-Jan $ 73,000 Utilities Payable 31-Jan $ 7,960 $ 7,100 $ 11,625 Income tax Payable 31-Jan $ 2,000 Bal. $ 3,900 Common Stock, $1 par value Op bal $ 19,000 2-Jan $ 2,100 Bal. $ 7,960 Additional paid in capital Op bal $ 89,000 2-Jan $ 39,900 $ 7,100 Paid in capital from Treasury Stock 30-Jan $ 1,400 $ 21,100 $ 128,900 Bal. $ 1,400 Bal. $ 2,000 Treasury Stock 12-Jan $ 26,400 30-Jan $ 15,400 Bal. Retained Earnings Op bal Bal. Dividends $ 7,960 $ 37,900 29-Jan Bal. Bal. $ 37,900 $ 11,000 Service Revenue 9-Jan $ 16,300 21-Jan $ 50,000 Salaries expense 31-Jan $ 42,900 Bal. $ 7,960 Utilities expense 31-Jan $ 7,100 Supplies expense $ 8,200 31-Jan Bal. $ 7,100 Bal. $ 8,200 Bal. $ 66,300 Bal. $ 42,900 Depreciation expense Income tax expense 31-Jan $ 1,725 31-Jan $ 2,000 Bal. $ 1,725 Bal. $ 2,000

Grand Finale Fireworks Account Names Cash Accounts Receivable Supplies Equipment Accmulated Depreciation Accounts Payable Dividend Payable Utilities Payable Income tax Payable Common Stock, $1 par value Req3 Adjusted TB Debit Credit 83,200 45,100 6,000 73,000 11,625 3,900 7,960 7,100 2,000 21,100 128,900 1,400 11,000 37,900 7,960 66,300 42,900 7,100 8,200 1,725 2,000 288,185 288,185 Paid in capital from Treasury Stock Treasury Stock Retained Earnings Dividends Service Revenue Salaries expense Utilities expense Supplies expense Depreciation expense Income tax expense Totals

66,300 66,300 Grand Finale Fireworks Multistep Income Statement For the month ended January 31, 2021 Service Revenue Total Revenue Operating Expenses Salaries expense Utilities expense Supplies expense Depreciation expense Total Operating Expenses Net income before taxes Income tax expense Net income 42,900 7,100 8,200 1,725 59,925 6,375 2,000 4,375 Retained Earnings Statement For the month ended January 31, 2021 Retained Earnings, January 1, 2021 Add: Net income Less: Dividends Retained Earnings, January 31, 2021 37,900 4,375 (7,960) 34,315

Grand Finale Fireworks Balance Sheet As of January 31, 2021 Assets Current Assets Cash Accounts Receivable Supplies Total Current Assets 83,200 45,100 6,000 134,300 Non-Current Assets Equipment Accumulated Depreciation Total Non-Current Assets Total Assets 73,000 (11,625) 61,375 195,675 Liabilities & Stockholders Equity Current Liabilities Accounts Payable Dividend Payable Utilities Payable Income tax Payable Total Current Liabilities 3,900 7,960 7,100 2,000 20,960 21,100 128,900 1,400 Stockholders Equity Common Stock, $1 par value Additional Paid-in Capital Paid in capital from Treasury Stock Total Paid in Capital Retained Earnings Subtotal Less: Treasury Stock Total Stockholders Equity Total Liabilities & Stockholders Equity 151,400 34,315 185,715 (11,000) 174,715 195,675

Analysis Equity Stockholders Equity al 1-Jan 31-Jan 174,715 Calculation Jan 1 Equity 19000+89000+37900 145,900 Return on equity Net Income / Average Stockholders Equity 4375/((145900 + 174715)/2) 2.7% Return on equity a2 Is the company more or less profitable than other companies? More Common shares outstanding as of Jan 31, 2021 Date No of shares 1-Jan Common stock outstanding 19,000 2-Jan Common stock issued 2,100 12-Jan Treasury Stock repurchased (1,200) 30-Jan Treasury Stock reissued 700 31-Jan Common stock outstanding 20,600 shares c1 Earnings per share Earnings per share Net income/ Weighted average common shares Outstanding 4375/((19000 + 20600)/2) 0.22 per share Earnings per share c2 Is earnings per share for January 2021 better or worse than last year's average? Better