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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.February15Issue additional shares of common stock, $30,000.

2.May20Provide services to customers for cash, $45,000, and on account, $40,000.

3.August31Pay salaries to employees for work in 2021, $33,000.

4.October1Purchase rental space for one year, $22,000.

5.November17Purchase supplies on account, $32,000.6.December30Pay dividends, $3,000.

The following information is available on December 31, 2021:

  1. Employees are owed an additional $5,000 in salaries.
  2. Three months of the rental space has expired.
  3. Supplies of $6,000 remain on hand.
  4. All of the services associated with the beginning deferred revenue have been performed.

Make an income statement, statement of stockholders' equity, and classified balance sheet.

image text in transcribedimage text in transcribedimage text in transcribed
RED FLASH PHOTOGRAPHY Income Statement For the Year Ended December 31, 2021 Expenses: Total Expenses\fTotal current liabilities Total current assets Longterm assets: Stockholder's Equity Total stockholders' equity Total assets Total liabilities and stockholders' equity

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