Accounts Debit Credit Cash $ 42,700 Accounts Receivable 44,500 Supplies 7,500 Eq

Question

  Accounts

Debit

Credit

  Cash

$ 42,700

  Accounts Receivable

44,500

  Supplies

7,500

  Equipment

64,000  

  Accumulated Depreciation

$   9,000  

  Accounts Payable

14,600

  Common Stock, $1 par value

10,000

  Additional Paid-in Capital

80,000

  Retained Earnings

45,100

       Totals

$158,700

$158,700

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 account, $14,300.

January 10

Purchase additional supplies on account, $4,900.

January 12

Repurchase 1,000 shares of treasury stock for $18 per share.

January 15

Pay cash on accounts payable, $16,500.

January 21

Provide services to customers for cash, $49,100.

January 22

Receive cash on accounts receivable, $16,600.

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 10,000 shares outstanding on January 1, 2018 and dividends are not paid on treasury stock.)

January 30

Reissue 600 shares of treasury stock for $20 per share.

January 31

Pay cash for salaries during January, $42,000.

  Accounts

Debit

Credit

  Cash

$ 42,700

  Accounts Receivable

44,500

  Supplies

7,500

  Equipment

64,000  

  Accumulated Depreciation

$   9,000  

  Accounts Payable

14,600

  Common Stock, $1 par value

10,000

  Additional Paid-in Capital

80,000

  Retained Earnings

45,100

       Totals

$158,700

$158,700

Post-Closing Grand Finale Fireworks Income Statement For the year ended January 31, 2018 Gross profit Total operating expenses 0 0 0

Explanation / Answer

Answer:

Grand Finale Fineworks Income Statement For the year ended Jan 31,2018 Credit sales 14300 Cash Sale 49100 Total sale 63400 Less: Purchases 21400 Gross margin 42000 Less: operating expense Salaries 42000 Net income 0

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