I am having trouble with the analysis at the end. ...

50.1K

Verified Solution

Question

Accounting

I am having trouble with the analysis at the end.
image
image
image
image
image
image
image
image
image
image
On January 1, 2024, the general ledger of Grand Finale Fireworks includes the following account balances: During January 2024 , the following transactions occur: January 2 Issue an additional 2, 600 shares of $1 par value common stock for $4,00. January 9 Provide services to customers on account, $18,200. January 10 Purchase additional supplies on account, $6,3e0. January 12 Purchase 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, $50,560. 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, 60 e shares outstanding on January 1, 2024, and dividends are not paid on treasury stock.) January 30 Resel1 800 shares of treasury stock for $23 per share. January 31 Pay cash for salaries during January, $43,460. The following information is avallable on January 31, 2024. a. Unpaid utilities for the month of January are $7,600 b. Supplies at the end of January total $6,500. 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 $11,400 d. Accrued income taxes at the end of January are $2,500. \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Supplies Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & - & 0 \\ \hline (N) 12 & January 31 & 8,700 & & 8,700 \\ \hline (4) 16 & January 31 & & 8,700 & 0 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{7}{|c|}{ Salaries Expense } \\ \hline No. & Date & \multicolumn{1}{|c|}{ Debit } & Credit & \multicolumn{1}{|c|}{ Balance } \\ \hline & January 01 & & & 0 \\ \hline 10 & January 31 & 43,400 & & 43,400 \\ \hline 16 & January 31 & & 43,400 & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Utilities Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 0 \\ \hline (B) 11 & January 31 & 7,600 & & 7.600 \\ \hline (5) 16 & January 31 & \pm & Stry 7,600 & 0 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \hline \multicolumn{6}{|c|}{ Income Tax Expense } \\ \hline No. & Date & \multicolumn{1}{|c|}{ Debit } & \multicolumn{1}{|c|}{ Credit } & \multicolumn{1}{|c|}{ Balance } \\ \hline & January 01 & & & 0 \\ \hline 14 & January 31 & 2,500 & & 2,500 \\ \hline 16 & January 31 & & 2,500 & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Treasury Stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 0 \\ \hline (1) 4 & January 12 & 23,100 &.+ & 23,100 \\ \hline D 9 & January 30 & . & 16,800 & 6,300 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Additional Paid-in Capital } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 94,000 \\ \hline (1) 1 & January 02 & & 38,000 & 132,000 \\ \hline A 9 & January 30 & . & 1,600 & 133,600 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained Earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 43,900 \\ \hline (2) 15 & January 31 & & 68,700 & 112,600 \\ \hline 16 & January 31 & 64,050 & & 48.550 \\ \hline [ 17 & January 31 & 4,470 & & 44,080 \\ \hline \end{tabular} \begin{tabular}{|r|c|r|r|r|} \hline \multicolumn{6}{|c|}{ Dividends } \\ \hline No. & Date & \multicolumn{1}{|c|}{ Debit } & \multicolumn{1}{|c|}{ Credit } & \multicolumn{1}{|c|}{ Balance } \\ \hline & December 31 & & & 0 \\ \hline 8 & January 29 & 4,470 & & 4,470 \\ \hline 17 & January 31 & & 4,470 & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Service Revenue } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 0 \\ \hline (a) & January 09 & 1 & 18,200 & 18,200 \\ \hline ( 6 & January 21 & & 50,500 & 68,700 \\ \hline [c) 15 & January 31 & 68,700 & & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Depreciation Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 0 \\ \hline a 13 & January 31 & 1,850 & & 1,850 \\ \hline a 16 & January 31 & & 1,850 & 0 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accumulated Depreciation } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 10,400 \\ \hline13 & January 31 & & 1,850 & 12,250 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Utilities Payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 0 \\ \hline (1) 11 & January 31 & 28 & 7,600 & 7,600 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Income Tax Payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 0 \\ \hline (D) 14 & January 31 & & 2,500 & 2,500 \\ \hline \multicolumn{5}{|c|}{ Common Stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 14,000 \\ \hline [ 1 & January 02 & & 2,000 & 16,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|r|r|} \hline No. & Date & Debit & \multicolumn{1}{|c|}{ Credit } & \multicolumn{1}{|c|}{ Balance } \\ \hline & January 01 & & & 0 \\ \hline 8 & January 29 & & 4,470 & 4,470 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts Payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 16,000 \\ \hline (1) 3 & January 10 & & 6,300 & 22,300 \\ \hline & January 15 & 17,900 & & 4,400 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|r|r|} \hline \multicolumn{8}{|c||}{ Dividends Pryabic } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline D & January 01 & & & 0 \\ \hline & January 29 & & 4,470 & 4,470 \\ \hline \end{tabular} General Ledger Account Adjusted \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Grand Finale Fireworks } \\ \hline \multicolumn{5}{|c|}{ Multiple-Step Income Statement } \\ \hline \multicolumn{5}{|c|}{ For the Month Ended January 31, 2024} \\ \hline Service Revenue & N$ & 68,700 & & \\ \hline Total Revenue & & & s & 68,700 \\ \hline Salaries Expense & \$ & 43,400 & & \\ \hline Utilities Expense & & 7,600 & & \\ \hline Supplies Expense & & 8,700 & & \\ \hline Depreciation Expense & a & 1,850 & & \\ \hline Total Operating Expenses & & & & 61,550 \\ \hline Income Before Taxes & & & & 7,150 \\ \hline Income Tax Expense & & & $ & 2,500 \\ \hline Net Income & & & $ & 4,650 \\ \hline \end{tabular} Using the information from the requirements above, complete the 'Analysis' tab. (Enter your return on equity value to one dec and earnings per share value to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students