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GL 2-11 (Algo) Complete the accounting cycle (LO2-3, 2-4, 2-5, 2-6, 2-7,2-8) On January 1, 2024, the general ledger of Dynamite Fireworks includes the following
GL 2-11 (Algo) Complete the accounting cycle (LO2-3, 2-4, 2-5, 2-6, 2-7,2-8)
On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 24,600
Accounts Receivable 6,000
Supplies 3,900
Land 58,000
Accounts Payable $ 4,000
Common Stock 73,000
Retained Earnings 15,500
Totals $ 92,500 $ 92,500
During January 2024, the following transactions occur:
January 2 Purchase rental space for one year in advance, $8,400 ($700 per month).
January 9 Purchase additional supplies on account, $4,300.
January 13 Provide services to customers on account, $26,300.
January 17 Receive cash in advance from customers for services to be provided in the future, $4,500.
January 20 Pay cash for salaries, $12,300.
January 22 Receive cash on accounts receivable, $24,900.
January 29 Pay cash on accounts payable, $4,800.
The following information is available on January 31.
Rent for the month of January has expired.
Supplies remaining at the end of January total $3,600.
By the end of January, $3,800 of services has been provided to customers who paid in advance on January 17.
Unpaid salaries at the end of January are $5,240.
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