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1 On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: Accounts 17.45/25 points awarded Scored Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Additional Paid-in Capital Retained Earnings Totals Debit Credit $ 43,400 45,900 8,200 71,000 $ 9,700 15,300 17,000 87,000 39,500 $168,500 $168,500 During January 2021, 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, $16,700. January 10 Purchase additional supplies on account, $5,600. January 12 Purchase 1,000 shares of treasury stock for $20 per share. January 15 Pay cash on accounts payable, $17,200. January 21 Provide services to customers for cash, $49,800. January 22 Receive cash on accounts receivable, $17,300. January 29 Declare a cash dividend of $0.20 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Grand Finale Fireworks had 17,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resell 800 shares of treasury stock for $22 per share. January 31 Pay cash for salaries during January, $42,700. The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $6,900. b. Supplies at the end of January total $5,800. 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 $10,700. d. Accrued income taxes at the end of January are $2,700. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Enter your Return on Equity value to one decimal place and earnings per share value to 2 decimal places. Analyze the following for Grand Finale Fireworks: (a) Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.50%, is the company more or less profitable than other companies in the same industry? 25 awarded Ing anuary, The following information is available on January 31, 2021. a. Unpaid utilities for the month of January are $6,900. b. Supplies at the end of January total $5,800. 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 $10,700. d. Accrued income taxes at the end of January are $2,700. red Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Enter your Return on Equity value to one decimal place and earnings per share value to 2 decimal places. Analyze the following for Grand Finale Fireworks: (a) Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.50%, is the company more or less profitable than other companies in the same industry? The return on equity is: Is the company more or less profitable than other companies? (b) How many shares of common stock are outstanding as of January 31, 2021? The number of common shares outstanding as of January 31, 2021 is % (c) Calculate earnings per share for the month of January. (Hint: To calculate average shares of common stock outstanding take the beginning shares outstanding plus the ending shares outstanding and divide the total by 2.) If earnings per share was $2.40 last year (i.e., an average of $0.20 per month), is earnings per share for January 2021 better or worse than last year's average? Earnings per share is: Is earnings per share for January 2021 better or worse than last year's average? < Balance Sheet Analysis > 5/25 ts awarded Scored a. Unpaid utilities for the month of January are $6,900. b. Supplies at the end of January total $5,800. c. Depreciation on the equipment for the month of January is calculated using the straightline method. At the time the equipment purchased, the company estimated a service life of three years and a residual value of $10,700. d. Accrued income taxes at the end of January are $2,700. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Enter your Return on Equity value to one decimal place and earnings per share value to 2 decimal places. Analyze the following for Grand Finale Fireworks: (a) Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.50%, is the company more or less profitable than other companies in the same industry? The return on equity is: Is the company more or less profitable than other companies? (b) How many shares of common stock are outstanding as of January 31, 2021? The number of common shares outstanding as of January 31, 2021 is % (c) Calculate earnings per share for the month of January. (Hint: To calculate average shares of common stock outstanding take the beginning shares outstanding plus the ending shares outstanding and divide the total by 2.) If earnings per share was $2.40 last year (i.e., an average of $0.20 per month), is earnings per share for January 2021 better or worse than last year's average? Earnings per share is: Is earnings per share for January 2021 better or worse than last year's average? < Balance Sheet Analysis > General Requirement Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Choose the appropriate accounts to complete the company's balance sheet. Make sure to select 'adjusted' from the dropdown, which will then populate the balances in those accounts from the adjusted trial balance. Post-closing Assets Current Assets: Grand Finale Fireworks Classified Balance Sheet January 31, 2021 Liabilities Current Liabilities: Total Current Assets 0 Total Current Liabilities 0 Noncurrent Assets: Stockholders' Equity Total Stockholders' Equity Total Liabilities & Stockholders' 0 Equity Total Assets < Income Statement Analysis > $ 0 +5/25 nts awarded Scored a. Unpaid utilities for the month of January are $6,900. b. Supplies at the end of January total $5,800. c. Depreciation on the equipment for the month of January is calculated using the straig purchased, the company estimated a service life of three years and a residual value d. Accrued income taxes at the end of January are $2,700. General Requirement Journal General Ledger Trial Balance Income Statement Balance Sheet An Choose the appropriate accounts to complete the company's income statement. Select 'adju will then populate the balances in those accounts from the adjusted trial balance. Post-closing Total Revenue Grand Finale Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 Total Operating Expenses < Trial Balance $ 0 0 0 $ 0 Balance Sheet > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted. 1 17.45/25 points awarded Scored 9 Jan 30 Cash Treasury Stock Additional Paid-in Capital 17,600 16,000 1,600 16 10 Jan 31 Salaries Expense 42,700 Cash 42,700 11 Jan 31 Utilities Expense 6,900 Accounts Payable 6,900 12 Jan 31 Supplies Expense 8,000 Supplies 8,000 13 Jan 31 Depreciation Expense 1,675 Accumulated Depreciation 1,675 14 Jan 31 Income Tax Expense 2,700 Income Tax Payable 2,700 66,500 66,500 15 Jan 31 Service Revenue Income Tax Payable 16 Jan 31 No Journal Entry Required 61,975 Salaries Expense 42,700 Supplies Expense 8,000 Utilities Expense Depreciation Expense Income Tax Expense 6,900 1,675 2,700 17 Jan 31 Retained Earnings < Requirement General Ledger > 3,620 3,630

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