On January 1, 2018, the general ledger of Grand Finale Fireworks includes the fo
ID: 2593360 • Letter: O
Question
On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:
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 to customers on account, $17,200.
January 10 Purchase additional supplies on account, $6,100.
January 12 Repurchase 1,400 shares of treasury stock for $18 per share.
January 15 Pay cash on accounts payable, $17,700.
January 21 Provide services to customers for cash, $50,300.
January 22 Receive cash on accounts receivable, $17,800.
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 12,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.)
January 30 Reissue 400 shares of treasury stock for $20 per share.
January 31 Pay cash for salaries during January, $43,200.
1. Record each of the transactions listed above.
Exercise 10-17 Part 2
a. Unpaid utilities for the month of January are $7,400.
b. Supplies at the end of January total $6,300.
c. 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 $11,200.
d. Accrued income taxes at the end of January are $2,300.
2. Record the adjusting entries on January 31, 2018 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
6. Record closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) ????
Record the closing entry for revenue accounts. ?
Record the closing entry for expense accounts. ?
Record the closing entry for dividend account. ?
Accounts Debit Credit Cash $ 43,900 Accounts Receivable 46,900 Supplies 8,700 Equipment 76,000 Accumulated Depreciation $ 10,200 Accounts Payable 15,800 Common Stock, $1 par value 12,000 Additional Paid-in Capital 92,000 Retained Earnings 45,500 Totals $ 175,500 $ 175,500 View transaction list View journal entry worksheet No Date General Journal DebitCredit January Utilities expense 7,400 31 Utilities payable 7,400 2 Supplies expense 8,500 31 Supplies 8,500 January 31 Depreciation expense 1,800 Accumulated depreciation 1,800 4 Income tax expense 2,300 31 Income tax payable 2,300Explanation / Answer
6. Record closing entries.
Date accounts & explanation debit credit Service revenue a/c 67500 Income summary a/c 67500 (To record close of revenue account) Income summary a/c 63200 Salaries expenses 43200 Supplies expenses 8500 Depreciation expenses 7400 Utilites expenses 1800 Income tax expenses 2300 (To record close of expenses account) Income summary a/c 4300 Retained earnings a/c 4300 (To record close of income summary a/c) Retained earnings a/c 5080 Dividend a/c 5080 (To record close of dividend account)