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.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.

Record the transactions that occurred during the year.(If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Journal entry worksheet Record the issuance of additional shares of common stock, $30,000. Note: Enter debits before credits. Journal entry worksheet Record the entry for services provided to customers for cash, $45,000, and on account, $40,000. Note: Enter debits before credits. Journal entry worksheet Record the salaries paid to employees for work in 2021, $33,000. Note: Enter debits before credits. Journal entry worksheet Record the purchase of rental space for one year, $22,000. Note: Enter debits before credits. Journal entry worksheet Record the purchase of supplies on account, $32,000. Note: Enter debits before credits. -- Journal entry worksheet Record the payment of dividends, $3,000. Note: Enter debits before credits

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

Financial Statement Analysis And Security Valuation

Authors: Stephen H Penman

4th Edition

0073379662, 9780073379661

More Books

Students also viewed these Accounting questions

Question

What is forfaiting? How does it work? Why did it arise?

Answered: 1 week ago

Question

1. The next area, Now we will turn to, or The second step is.

Answered: 1 week ago

Question

2. In what way can we say that method affects the result we get?

Answered: 1 week ago