Question
On January 1, 2021, Red Flash Photography had the following balances: Cash, $15,000; Supplies, $8,300; Land, $63,000; Deferred Revenue, $5,300; Common Stock $53,000; and Retained
On January 1, 2021, Red Flash Photography had the following balances: Cash, $15,000; Supplies, $8,300; Land, $63,000; Deferred Revenue, $5,300; Common Stock $53,000; and Retained Earnings, $28,000. During 2021, the company had the following transactions:
The following information is available on December 31, 2021:
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Employees are owed an additional $4,300 in salaries.
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Three months of the rental space has expired.
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Supplies of $5,300 remain on hand.
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All of the services associated with the beginning deferred revenue have been performed.
Prepare a statement of stockholders equity, and classified balance sheet.
1. February 15 Issue additional shares of common stock, $23,000. 2. May 20 Provide services to customers for cash, $38,000, and on account, $33,000. 3. August 31 Pay salaries to employees for work in 2021, $26,000. 4. October 1 Purchase rental space for one year, $15,000. 5. November 17 Purchase supplies on account, $25,000. 6. December 30 Pay dividends, $2,300Step by Step Solution
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