Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2021, Red Flash Photography had the following balances: Cash, $22,000; Supplies, $9,000; Land, $70,000; Deferred Revenue, $6,000; Common Stock $60,000; and Retained

On January 1, 2021, Red Flash Photography had the following balances: Cash, $22,000; Supplies, $9,000; Land, $70,000; Deferred Revenue, $6,000; Common Stock $60,000; and Retained Earnings, $35,000. During 2021, the company had the following transactions:

1. February 15 Issue additional shares of common stock, $30,000.
2. May 20 Provide services to customers for cash, $45,000, and on account, $40,000.
3. August 31 Pay salaries to employees for work in 2021, $33,000.
4. October 1 Paid for one year's rent in advance, $22,000.
5. November 17 Purchase supplies on account, $32,000.
6. December 30 Pay dividends, $3,000.

The following information is available on December 31, 2021:

Employees are owed an additional $5,000 in salaries.

Three months of the rental space has expired.

Supplies of $6,000 remain on hand.

All of the services associated with the beginning deferred revenue have been performed.

Please help with Income statement

image text in transcribed

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

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

Cengage Learnings Online General Ledger For Heintz/parrys College Accounting, 2, 2 Terms (12 Months)

Authors: James A. Heintz, Robert W. Parry

22nd Edition

1305669991, 9781305669994

More Books

Students also viewed these Accounting questions