Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2015, Red Flash Photography had the following balances: Cash, $15,000; Supplies, $7,000; Land, $64,000; Unearned Revenue, $6,000; Common Stock $60,000; Retained Earnings,

On January 1, 2015, Red Flash Photography had the following balances: Cash, $15,000; Supplies, $7,000; Land, $64,000; Unearned Revenue, $6,000; Common Stock $60,000; Retained Earnings, $20,000. During 2015, the company had the following transactions: 1. Issue additional shares of common stock, $22,000. 2. Provide services to customers for cash, $40,000, and on account, $30,000. 3. Pay salaries to employees for work in 2015, $25,000. 4. Purchase rental space for one year, $18,000. 5. Purchase supplies on account, $20,000. 6. Pay dividends, $3,000. The following information is available on December 31, 2015: 1. Employees are owed an additional $5,000 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $4,000 remain on hand. 4. All of the services associated with the beginning unearned revenue have been performed.

Required: 1. Record the transactions that occurred during the year. 2. Record the adjusting entries at the end of the year. 3. Prepare an adjusted trial balance. 4. Prepare an income statement, statement of stockholders' equity, and classified balance sheet. 5. Prepare closing entries.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook On Energy Conservation And Energy Auditing A Practical Guide For Energy Management

Authors: Divyabharathi R., Subramanian P.

1st Edition

B0CH25MFSP, 978-6206755623

More Books

Students also viewed these Accounting questions