1 Book Ask ferences Problem 3-32A (Static) Comprehensive problem: single cycle LO 3-1, 3-2, 3-3, 3-4 The following transactions pertain to Smith Training Company for Year 1: January 30 Established the business when it acquired $45,000 cash from the issue of common stock. February 1 Paid rent for office space for two years, $24,000 cash. April 10 Purchased $3,200 of supplies on account. July 1 Received $24,000 cash in advance for services to be provided over the next year. July 20 Paid $1,500 of the accounts payable from April 10. August 15 Billed a customer $18,000 for services provided during August. September 15 Completed a job and received $8,400 cash for services rendered. October 1 Paid employee salaries of $12,000 cash. October 15 Received $15,000 cash from accounts receivable. November 16 Billed customers $42,000 for services rendered on account. December 1 Paid a dividend of $15,000 cash to the stockholders. December 31 Adjusted records to recognize the services provided on the contract of July 1. December 31 Recorded $3,600 of accrued salaries as of December 31.1 December 31 Recorded the rent expense for the year. (See February 1.) December 31 Physically counted supplies; $280 was on hand at the end of the period. Required a. Record the preceding transactions in the general journal. b. Post the transactions to T-accounts. (You will also post the closing entries in Req E to these T-accounts.) c. Prepare an adjusted Trial Balance. d-1. Prepare an income statement for Year 1. d-2. Prepare a statement of changes in stockholders' equity for Year 1. d-3. Prepare a balance sheet for Year 1. d-4. Prepare a statement of cash flows for Year 1. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal. f. Prepare a post-closing trial balance for December 31, Year 1. Req A Req B Req C Req D1 Req D2 Req D3 Req D4 Req E Req F Record the preceding transactions in the general journal. (Do not round intermediate calculations. If no transaction/event, select "No journal entry required" in the first account field.) y is required for a View transaction list View journal entry worksheet No 1 2 3 Date Jan 30 Feb 01. Apr 10 7 4 Jul 01 10 5 6 7 Jul 20 Aug 15 Sep 15 7 8 Oct 01 General Journal < Prev 1 of 1 www Debit Credit Next 6 10 10 11 11 Oct 15 Nov 16 Dec 01 12 12 Dec 31 13 Dec 31 14 14 Dec 31 15 Dec 31 Req A Req B Req C Req D1 Req D2 Req D3 Req D4 Req E Req F Post the transactions to T-accounts. (You will also post the closing entries in Req E to these T-accounts.) Beg. Bal. Cash End. Bal. 0 0 Prepaid Rent Beg. Bal. End. Bal. Beg. Bal. Accounts Receivable End. Bal. 0 0 Supplies Beg. Bal. 0 0 End. Bal. Accounts Payable Beg. Bal. End. Bal. 0 0 0 0 Unearned Revenue Beg. Bal. 0 0 Prev 1 of 1 Next Beg. Bal. End. Bal. Salaries Payable Beg. Bal. Common Stock 0 End. Bal. 0 Retained Earnings Dividends Beg. Bal. Beg. Bal. End. Bal. End. Bal. Service Revenue Rent Expense Beg. Bal. Beg. Bal. End. Bal. Beg. Bal. 0 0 Salaries Expense 0 End. Bal. 0 0 Beg. Bal. Supplies Expense End. Bal. 0 0 End. Bal. Prey 1 of 1 0 0 Next Req A Req B Req C Req D1 Req D2 Req D3 Req D4 Req Prepare an adjusted Trial Balance. SMITH TRAINING COMPANY Trial Balance December 31, Year 1 Account Titles Debit Credit Totals $ 0 $ 0 < Req B Req D1 > Complete this question by entering your answers in the tabs below. Req A Req B Req C Req D1 Req D2 Req D3 Req D4 Req E Prepare an income statement for Year 1. SMITH TRAINING COMPANY Income Statement For the Year Ended December 31, Year 1 Expenses Total expenses 0 $ 0 < Req C Req D2 > a-4. Prepare a statement of cash nows for rear 1. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general j f. Prepare a post-closing trial balance for December 31, Year 1. Complete this question by entering your answers in the tabs below. Req A Req B Req C Req D1 Req D2 Req D3 Req D4 Req E Prepare a statement of changes in stockholders' equity for Year 1. SMITH TRAINING COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Total Stockholders' Equity 0 SA $ 0 Complete this question by entering y answers in the tabs below. Req A Req B Req C Req D1 Req D2 Req D3 Req D4 Req Prepare a balance sheet for Year 1. Assets Total assets Liabilities Total liabilities Stockholders' Equity SMITH TRAINING COMPANY Balance Sheet As of December 31, Year 1 Total stockholders' equity Total liabilities and stockholders' equity S 0 $ 0 0 $ 0 Req A Req B Req C Req D1 Req D2 Req D3 Req D4 Re Prepare a statement of cash flows for Year 1. (Enter cash outflows with a minus sign.) SMITH TRAINING COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: $ 69 0 Net cash flow from investing activities Cash flows from financing activities: $ 0 Net cash flow from financing activities Ending cash balance < Req D3 0 0 $ 0 Req E > Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal. (If no em transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 Record the closing entry for revenues. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal < Req D4 Req F> Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 Record the closing entry for expenses. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Clear entry Record entry View general journal < Req D4 Req F > Record the entries to close the Year 1 temporary ar transaction/event, select "No journal entry required View transaction list nts to Retained Earnings in the general journal. (If no the first account field.) Journal entry worksheet < 1 2 3 Record the closing entry for dividends. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal < Req D4 Req F > Req A Req B Req C Req D1 Req D2 Req D3 Req D4 Req E Req F Prepare a post-closing trial balance for December 31, Year 1. SMITH TRAINING COMPANY Post-Closing Trial Balance December 31, Year 1 Account Titles Debit Credit 0 Totals < Req E Req F