Question

Required information

[The following information applies to the questions displayed below.]

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

Accounts	Debit			Credit
Cash	$	44,500
Accounts Receivable		48,100
Supplies		9,300
Equipment		82,000
Accumulated Depreciation				$	10,800
Accounts Payable					16,400
Common Stock, $1 par value					18,000
Additional Paid-in Capital					98,000
Retained Earnings					40,700
Totals	$	183,900		$	183,900

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, $19,500.
January		10		Purchase additional supplies on account, $6,700.
January		12		Purchase 1,200 shares of treasury stock for $21 per share.
January		15		Pay cash on accounts payable, $18,300.
January		21		Provide services to customers for cash, $50,900.
January		22		Receive cash on accounts receivable, $18,400.
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 600 shares of treasury stock for $23 per share.
January		31		Pay cash for salaries during January, $43,800.

1. Unpaid utilities for the month of January are $8,000.
2. Supplies at the end of January total $6,900..
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 $11,800..
4. Accrued income taxes at the end of January are $2,900.

3. Prepare an adjusted trial balance as of January 31, 2021.

	GRAND FINALE FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Credit Cash Accounts Receivable Inventory Totals $0 $0

Answer 1

Grand Finale Fireworks Adjusted Trial Balance January 31, 2021
Account Titles	Debit	Credit
	$	$
Cash	80,300
Accounts Receivable	49,200
Supplies	6,900
Equipment	82,000
Accumulated Depreciation		12,750
Accounts Payable		12,800
Income Taxes Payable		2,900
Dividends Payable		5,640
Common Stock		20,000
Additional Paid-in Capital : Common Stock		136,000
Additional Paid-in Capital :Treasury Stock		1,200
Treasury Stock	12,600
Retained Earnings		40,700
Dividends	5,640
Service Revenue		70,400
Salaries Expense	43,800
Supplies Expense	9,100
Depreciation Expense	1,950
Utilities Expense	8,000
Income Tax Expense	2,900
Totals	$ 302,390	$ 302,390