Question

On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts De...

On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:

Accounts Debit Credit
Cash $ 44,100
Accounts Receivable 47,300
Supplies 8,900
Equipment 78,000
Accumulated Depreciation $ 10,400
Accounts Payable 16,000
Common Stock, $1 par value 14,000
Paid-in Capital-Excess of Par 94,000
Retained Earnings 43,900
Totals $ 178,300 $ 178,300


During January 2018, 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, $18,200.
January 10 Purchase additional supplies on account, $6,300.
January 12 Repurchase 1,100 shares of treasury stock for $21 per share.
January 15 Pay cash on accounts payable, $17,900.
January 21 Provide services to customers for cash, $50,500.
January 22 Receive cash on accounts receivable, $18,000.
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 14,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.)
January 30 Reissue 800 shares of treasury stock for $23 per share.
January 31 Pay cash for salaries during January, $43,400.


The following information is available on January 31, 2018.

  1. Unpaid utilities for the month of January are $7,600.
  2. Supplies at the end of January total $6,500.
  3. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $11,400.
  4. Accrued income taxes at the end of January are $2,500.
No Date Account Title Debit Credit
1 Jan 02 Cash 40,000
Common stock 2,000
Paid-in capital-excess of par 38,000
2 Jan 09 Accounts receivable 18,200
Service revenue 18,200
3 Jan 10 Supplies 6,300
Accounts payable 6,300
4 Jan 12 Treasury stock 23,100
Cash 23,100
5 Jan 15 Accounts payable 17,900
Cash 17,900
6 Jan 21 Cash 50,500
Service revenue 50,500
7 Jan 22 Cash 18,000
Accounts receivable 18,000
8 Jan 29 Retained earnings 4,470
Dividends payable 4,470
9 Jan 30 Cash 18,400
Treasury stock 16,800
Paid-in capital-share repurchase 1,600
10 Jan 31 Salaries expense 43,400
Cash 43,400
11 Jan 31 Utilities expense 7,600
Utilities payable 7,600
12 Jan 31 Supplies expense 8,700
Supplies 8,700
13 Jan 31 Depreciation expense 1,200
Accumulated depreciation 1,200
14 Jan 31 Income tax expense 2,500
Income tax payable 2,500
15 Jan 31 Income tax payable 68,700
Retained earnings 68,700
16 Jan 31

Record closing entry for expenses

0 0
Add a comment Improve this question Transcribed image text
Answer #1

ANSWERGrand Finale Fireworks Journal Entry Date Particulars 2.1.2018 Cash a/c Dr. To Common Stock To Additional Paid in Capital Deb

Adjusting Enteries Date Particulars 31.1.2018 Utilities expense a/c To Utilities Payable Dr. Debit in $Credit in $ 7600 7600

68700 Statement of Income For the period ending 31.1.2018 Services Revenue Less: Salary expense Utilities expense Supplies ex

Amounts in $ Amounts in $ 4400 4470 2500 7600 18970 Balance sheet As at 31.1.2018 Assets Amounts in $ Amounts in $ Liabilitie

_____________________________________________

If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.

*****************THANK YOU**************

Add a comment
Know the answer?
Add Answer to:
On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts De...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:...

    On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 44,100 Accounts Receivable 47,300 Supplies 8,900 Equipment 78,000 Accumulated Depreciation $ 10,400 Accounts Payable 16,000 Common Stock, $1 par value 14,000 Paid-in Capital-Excess of Par 94,000 Retained Earnings 43,900 Totals $ 178,300 $ 178,300 During January 2018, the following transactions occur: January 2 Issue an additional 2,000 shares of $1 par value common stock for $40,000. January 9 Provide...

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

    On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Credit Accounts Debit $44,100 47,300 8,900 78,000 Cash Accounts Rece ivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings 10,400 16,000 14,000 94,000 43,900 $178,300 $178,300 Totals During January 2021, the following transactions occur: January January January 10 Purchase additional supplies on account, $6,300. January 12 Purchase 1,100 shares of treasury stock for $21 per share....

  • On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:...

    On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:   Accounts Debit Credit   Cash $ 43,100   Accounts Receivable 45,300   Supplies 7,900   Equipment 68,000   Accumulated Depreciation $ 9,400   Accounts Payable 15,000   Common Stock, $1 par value 14,000   Additional Paid-in Capital 84,000   Retained Earnings 41,900        Totals $ 164,300 $ 164,300 During January 2018, the following transactions occur: January 2 Issue an additional 2,100 shares of $1 par value common stock for $42,000. January 9 Provide services...

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

    On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 44,700 Accounts Receivable 48,500 Supplies 9,500 Equipment 84,000 Accumulated Depreciation $ 11,000 Accounts Payable 16,600 Common Stock, $1 par value 20,000 Additional Paid-in Capital 100,000 Retained Earnings 39,100 Totals $ 186,700 $ 186,700 During January 2021, the following transactions occur: January 2 Issue an additional 2,300 shares of $1 par value common stock for $46,000. January 9 Provide services...

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

    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...

  • On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:...

    On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Debit $ 43,200 45,500 8,000 69,000 $ 9,500 15,100 15,000 85,000 41,100 Totals $165,700 $165,700 During January 2018, 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 January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts De...

    On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 44,200 Accounts Receivable 47,500 Supplies 9,000 Equipment 79,000 Accumulated Depreciation $ 10,500 Accounts Payable 16,100 Common Stock, $1 par value 15,000 Additional Paid-in Capital 95,000 Retained Earnings 43,100 Totals $ 179,700 $ 179,700 During January 2021, the following transactions occur: January 2 Issue an additional 2,200 shares of $1 par value common stock for $44,000. January 9 Provide services...

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

    On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Debit Credit Cash $ 44,200 Accounts Receivable 47,500 Supplies 9,000 Equipment 79,000 Accumulated Depreciation $ 10,500 Accounts Payable 16,100 Common Stock, $1 par value 15,000 Additional Paid-in Capital 95,000 Retained Earnings 43,100 Totals $ 179,700 $ 179,700 During January 2021, the following transactions occur: January 2 Issue an additional 2,200 shares of $1 par value common stock for $44,000. January 9 Provide services...

  • On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:...

    On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances: Credit Debit $ 43,000 45,100 7,800 67,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Paid-in Capital-Excess of Par Retained Earnings Totals $ 9,300 14,900 13,000 83,000 42,700 $ 162,900 $ 162,900 During January 2018, the following transactions occur: January 2 Issue an additional 2,200 shares of $1 par value common stock for $44,000. January 9 Provide...

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

    On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 43,500 46,100 8,300 72,000 $ 9,800 15,400 18,000 88,000 38,700 $169,900 $169,900 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT