On January 1, 2021, Red Flash Photography had the following balances: Cash, $19,000; Supplies, $8,700; Land, $67,000; Deferred Revenue, $5,700; Common Stock $57,000; and Retained Earnings, $32,000. During 2021, the company had the following transactions:
Exercise 3-20A Record transactions and prepare adjusting entries, adjusted trial balance, financial statements, and closing entries (LO3-3, 3-4, 3-5, 3-6, 3-7) (GL) On January 1, 2021, Red Flash Photography had the following balances: Cash, $19,000; Supplies, $8,700; Land, $67,000; Deferred Revenue, $5,700; Common Stock $57,000; and Retained Earnings, $32,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $27,000. 2. May 20 Provide services to customers for cash, $42,000, and on account, $37,000. 3. August 31 Pay salaries to employees for work in 2021, $30,000. 4. October 1 Purchase rental space for one year, $19,000. 5. November 17 Purchase supplies on account, $29,000. 6. December 30 Pay dividends, $2,700. The following information is available on December 31, 2021: 1. Employees are owed an additional $4,700 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $5,700 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed. General Journal Trial Balance General Ledger Income Statement Balance Sheet Statement of SE Requirement 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger and the Trial Balance' tabs to see the effect of the transactions on the account balances, 2. Record the adjusting entries in the 'General Journal tab. 3. Review the adjusted 'Trial Balance' as of December 31, 2021. 4. Prepare an income statement for the year ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare the statement of Stockholder's Equity for the year ended December 31, 2021, in the 'Income Statement' tab. 6. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab. 7. Record the closing entries in the 'General Journal" tab. Journal entry worksheet Record the purchase of supplies on account, $29,000. Note: Enter debits before credits. Date Account Title Debit Credit Nov 17 View general Journal Record entry Clear entry Journal entry worksheet Record the payment of dividends, $2,700. Note: Enter debits before credits. Dato Account Title Debit Credit Dec 30 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 3 8 ..... .. 13 > Record the adjusting entry for salaries on December 31. Note: Enter debits before credits. Date Account Title Debit Credit Dec 31 Record entry Clear entry View general journal Journal entry worksheet Income Statement General General Requirement Income Journal Trial Balance Statement of Ledger Statement SE Balance Sheet Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Dates: Jan 01 to: Dec 30 RED FLASH PHOTOGRAPHY Balance Sheet As of January 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Deferred Revenue $ 0 $ 0 0 0 0 0 0 0 0 Total Current Liabilities 0 0 0 0 0 0 Total Liabilites Stockholder's Equity Total Current Assets Long-term Assets: 0 0 0 0 0 Total Stockholders' Equity Total Liabilities & Stockholders' Equity $ 0 $ 0 Total Assets Balance Sheet Statement of SE
