Question
On January 1, 2021, Red Flash Photography had the following balances: Cash, $16,000; Supplies, $8,400; Land, $64,000; Deferred Revenue, $5,400; Common Stock $54,000; and Retained
On January 1, 2021, Red Flash Photography had the following balances: Cash, $16,000; Supplies, $8,400; Land, $64,000; Deferred Revenue, $5,400; Common Stock $54,000; and Retained Earnings, $29,000. During 2021, the company had the following transactions:
| 1. | February | 15 | Issue additional shares of common stock, $24,000. | |||
| 2. | May | 20 | Provide services to customers for cash, $39,000, and on account, $34,000. | |||
| 3. | August | 31 | Pay salaries to employees for work in 2021, $27,000. | |||
| 4. | October | 1 | Purchase rental space for one year, $16,000. | |||
| 5. | November | 17 | Purchase supplies on account, $26,000. | |||
| 6. | December | 30 | Pay dividends, $2,400. |
The following information is available on December 31, 2021:
- Employees are owed an additional $4,400 in salaries.
- Three months of the rental space has expired.
- Supplies of $5,400 remain on hand.
- All of the services associated with the beginning deferred revenue have been performed.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077400163
