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Exercise 18-26 (Algo) General ledger exercise; Bonds; Installment note, early extinguishment [LO18-4, 18-5, 18-7] On January 1, 2021, the general ledger of Freedom Fireworks Includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $1 par value Paid-in Capital-Excess of Par Retained Earnings Totals Debit Credit $ 43,200 45,500 8,000 69,000 $ 9,500 15,100 15,000 85,000 41,100 $165,700 $165,700 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 on account, $15,600. January 10 Purchase additional supplies on account, $5,400. January 12 Repurchase 1, 200 shares of treasury stock for $17 per share. January 15 Pay cash on accounts payable, $17,000. January 21 Provide services to customers for cash, $49,600. January 22 Receive cash on accounts receivable, $17,100. 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: Freedom Fireworks had 15,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) January 30 Resale 800 shares of treasury stock for $19 per share. January 31 Pay cash for salaries during January, $42,500. The following information is available on January 31, 2021. 1. Unpaid utilities for the month of January are $6,700. 2. Supplies at the end of January total $5,600. 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 $10,500. 4. Accrued Income taxes at the end of January are $2,500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-10) assuming a FIFO perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balanco The following information is available on January 31, 2021. 1. Unpaid utilities for the month of January are $6,700. 2. Supplies at the end of January total $5,600. 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 $10,500. 4. Accrued Income taxes at the end of January are $2,500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list X 1 16 > Issue an additional 2,000 shares of $1 par value common stock for $40,000. 10,000. 2 Provide services to customers on account, $15,600. 3 Purchase additional supplies on account, $5,400. 4 Repurchase 1,200 shares of treasury stock for $17 per share. Credit 5 Pay cash on accounts payable, $17,000. 6 Provide services to customers for cash, $49,600. 7 Receive cash on accounts receivable, $17,100. Note : = journal entry has been entered Record entry Clear entry View general joumal eBook Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet eferences Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list X 16 > 8 Declare a cash dividend of s0.30 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Freedom Fireworks had 15,000 shares outstanding on January 1, 2021, and dividends are not paid on treasury stock.) 10,000. 9 Resale 800 shares of treasury stock for $19 per share. 10 Pay cash for salaries during January, $42,500. Credit 11 Record the adjusting entry for utilities. 12 Record the adjusting entry for supplies. 13 Record the adjusting entry for depreciation. (Hint: Note : = journal entry has been entered .. Record entry Clear entry View general journal The following information is available on January 31, 2021. 1. Unpaid utilities for the month of January are $6,700. 2. Supplies at the end of January total $5,600. 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 $10,500. 4. Accrued Income taxes at the end of January are $2,500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list X 10 Pay cash for salaries during January, $42,500. 16 > 11 Record the adjusting entry for utilities. 10,000. 12 Record the adjusting entry for supplies. 13 Record the adjusting entry for depreciation. (Hint: Remember that depreciation should be calculated just for the month of January.) Credit 14 Record the adjusting entry for income tax. 15 Record the closing entry for revenue. 16 Record the closing entry for expenses. Note : = journal entry has been entered Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted General Ledger Account Cash Accounts receivable Debit Credit No. Date Debit Credit No. Date Balance 43,200 Balance 45,500 Jan 01 Dec 31 Supplies Equipment No. Date Debit Credit No. Date Debit Credit Balance 8,000 Balance 69,000 Dec 31 Jan 01 Accumulated depreciation Accounts payable No. Debit Credit No. Date Debit Credit Balance Date Dec 31 Balance 9,500 Dec 31 15,100 Common stock Paid-in capital-excess of par Debit Credit No. Date Debit Credit Balance No. Date Balance 85,000 Dec 31 15,000 Jan 01 Retained earnings No. Debit Credit Date Dec 31 Balance 41,100 The following information is available on January 31, 2021. 1. Unpaid utilities for the month of January are $6,700. 2. Supplies at the end of January total $5,600. 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 $10,500. 4. Accrued Income taxes at the end of January are $2,500. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Unadjusted Freedom Fireworks Trial Balance January 31, 2021 Account Title Debit Credit $ 43,200 45,500 8,000 69.000 Cash Accounts receivable Supplies Equipment Accumulated depreciation Accounts payable Common stock Paid-in capital-excess of par Retained earnings Total 9,500 15.100 15,000 85,000 41,100 $ 165,700 $ 165,700 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare an income statement for the period ended January 31, 2021. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Freedom Fireworks Multiple-Step Income Statement For the Month ended January 31, 2021 Total revenue $ 0 Total operating expenses 0 0 $ 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare a classified balance sheet as of January 31, 2021. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Freedom Fireworks Classified Balance Sheet January 31, 2021 Assets Liabilities Current Assets: Current Liabilities: 0 0 Total Current Assets Noncurrent Assets Total Current Liabilities Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets $ 0 S 0

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