Exercise $3-20($Algo$)$ Record transactions and prepare adjusting entries, adjusted trial balance, financial statements, and closing entries $($LO$3-3,3-4,3-5,3-6,3-7)$

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$[$The following information applies to the questions displayed below.$]$

On January $1,2024,$ Red Flash Photography had the following balances: Cash, $$29,000$; Supplies, $$9,700$; Land, $$77,000$; Deferred Revenue, $$6,700$; Common Stock $$67,000$; and Retained Earnings, $$42,000.$ During $2024,$ the company had the following transactions:

$1.$ February $15$ Issue additional shares of common stock, $$37,000.$

$2.$ May $20$ Provide services to customers for cash, $$52,000,$ and on account, $$47,000.$

$3.$ August $31$ Pay salaries to employees for work in $2024,$ $$40,000.$

$4.$ October $1$ Purchase rental space for one year, $$29,000.$

$5.$ November $17$ Purchase supplies on account, $$39,000.$

$6.$ December $30$ Pay dividends, $$3,700.$

The following information is available on December $31,2024$:

Employees are owed an additional $$5,700$ in salaries.

Three months of the rental space have expired.

Supplies of $$6,700$ remain on hand. All other supplies have been used.

All of the services associated with the beginning deferred revenue have been performed.

Exercise $3-20($Algo$)$ Part $3$

$3.$ Prepare an adjusted trial balance.