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) Skip to question [The following information applies to the questions displayed below.] On January 1, 2021, Red Flash Photography had the following balances: Cash, $16,000; Supplies, $8,400; Land, $64,000; Deferred Revenue, $5,400; Common Stock $54,000; and Retained Earnings, $29,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $24,000. 2. May 20 Provide services to customers for cash, $39,000, and on account, $34,000. 3. August 31 Pay salaries to employees for work in 2021, $27,000. 4. October 1 Purchase rental space for one year, $16,000. 5. November 17 Purchase supplies on account, $26,000. 6. December 30 Pay dividends, $2,400. The following information is available on December 31, 2021: Employees are owed an additional $4,400 in salaries. Three months of the rental space has expired. Supplies of $5,400 remain on hand. All of the services associated with the beginning deferred revenue have been performed. Exercise 3-20A Part 4 4. Prepare an income statement, statement of stockholders equity, and classified balance sheet.

Income Stmt of Statement Stockholders Balance Sheet Equity Prepare an income statement. RED FLASH PHOTOGRAPHY Income Statement For the Year Ended December 31, 2021 Expenses: Total Expenses Required information Income Stmt of Statement Stockholders Balance Sheet Equity Prepare a statement of stockholders' equity. RED FLASH PHOTOGRAPHY Statement of Stockholders' Equity For the Year Ended December 31, 2021 Common Stock Retained Earnings Total Stockholders' Equity Balance at January 1 Balance at December 31 ITILUITIC Stockholders Balance Sheet Statement Equity Prepare a classified balance sheet. RED FLASH PHOTOGRAPHY Balance Sheet December 31, 2021 Assets Liabilities Current assets: Current liabilities: Total current liabilities Total current assets Long-term assets: Stockholder's Equity Total stockholders' equity Total liabilities and stockholders' equity Total assets