Exercise 3-20A Record transactions and prepare adjusting entries, adjusted trial balance, financial statements, and closing entries (LO3-3, 3-4, 3-5, 3-6, 3-7) (GL) On January 1, 2021, Red Flash Photography had the following balances: Cash, $20,000; Supplies, $8,800; Land, $68,000; Deferred Revenue, $5,800; Common Stock $58,000; and Retained Earnings, $33,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $ 28,000. 2. May 20 Provide services to customers for cash, $ 43,000, and on account, $38,000. 3. August 31 Pay salaries to employees for work in 2021, $31,000. 4. October 1 Purchase rental space for one year, $20,000. 5. November 17 Purchase supplies on account, $30,000. 6. December 30 Pay dividends, $2,800. The following information is available on December 31, 2021: 1. Employees are owed an additional $4,800 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $5,800 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab. 3. Review the adjusted 'Trial Balance' as of December 31, 2021. 4. Prepare an income statement for the year ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare the statement of Stockholder's Equity for the year ended December 31, 2021, in the 'Income Statement' tab. 6. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab. 7. Record the closing entries in the 'General Journal' tab. View transaction list View journal entry worksheet No Account Title Credit Date Feb 15 Debit 28,000 1 Cash Common Stock 28,000 2 May 20 43,000 Cash Accounts Receivable 38,000 Aug 31 31,000 Salaries Expense Cash 31,000 4 Oct 01 20,000 Prepaid Rent Cash 2,000 5 Nov 17 30,000 Supplies Accounts Payable 30,000 6 Dec 30 Dividends 2,800 Cash 2.800 General Ledger Account Cash Debit Accounts Receivable Debit Credit No. Credit No. Balance Balance 20,000 48,000 Date Jan 01 May 20 0 2 38,000 (38,000) Date Jan 01 Feb 15 May 20 Aug 31 Oct 01 Dec 30 28,000 43,000 2 3 91,000 4 31,000 2,000 2,800 60,000 58,000 55,200 6 Supplies Prepaid Rent Debit Credit No. Debit Credit No. Balance Date Jan 01 Nov 17 Balance 8,800 38,800 Date Jan 01 Oct 01 - 5 30,000 4 20,000 Land Accounts Payable No. Debit Credit No. Debit Credit Balance Date Jan 01 Balance 68,000 Date Jan 01 Nov 17 5 30,000 30,000 Deferred Revenue Debit Credit Common Stock Debit Credit No. No. Date Jan 01 Balance 5,800 Date Jan 01 Feb 15 Balance 58,000 86,000 1 28,000 Retained Earnings rohit Credit Salaries Expense Dehit Credit No Dato T Balance No Data Balance Land Accounts Payable No. Debit Credit No. Debit Credit Balance Date Jan 01 Balance 68,000 Date Jan 01 Nov 17 5 30,000 30,000 Deferred Revenue Debit Credit Common Stock Debit Credit No. No. Date Jan 01 Balance 5,800 Date Jan 01 Feb 15 Balance 58,000 86,000 28,000 Retained Earnings Debit Credit Salaries Expense Debit Credit No. No. Balance Date Jan 01 Balance 33,000 Date Jan 01 Aug 31 - 3 31,000 31,000 Dividends No. Date Debit Credit Balance 6 Dec 30 2,800 2,800 Unadjusted - RED FLASH PHOTOGRAPHY Trial Balance December 30, 2021 Account Title Credit Debit 55,200 $ 38,000 38,800 20,000 68,000 -Cash Accounts Receivable Supplies Prepaid Rent Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Salaries Expense Dividends 30,000 5,800 86,000 33,000 31,000 2,800 215,800 $ Total $ 192,800 ( General Ledger Income Statement > Choose the appropriate accounts to be reported on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted RED FLASH PHOTOGRAPHY Income Statement For the year ended December 31, 2021 Revenues: Total Revenue Expenses: Total Expenses $ Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance indicated. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Dates: Jan 01 - to: Dec 30 RED FLASH PHOTOGRAPHY Statement of Stockholders' Equity For the Period Ended December 31, 2021 Common Stock Retained Earnings Total Stockholders' Equity DO (2,800) (2,800) (2,800)| (2,800) $ 0 $ $