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On January 1, 2021, Red Flash Photography had the following balances: Cash, $27,000; Supplies, $9,500; Land, $75,000; Deferred Revenue, $6,500; Common Stock $65,000; and Retained

On January 1, 2021, Red Flash Photography had the following balances: Cash, $27,000; Supplies, $9,500; Land, $75,000; Deferred Revenue, $6,500; Common Stock $65,000; and Retained Earnings, $40,000. During 2021, the company had the following transactions:

1. February 15 Issue additional shares of common stock, $35,000.
2. May 20 Provide services to customers for cash, $50,000, and on account, $45,000.
3. August 31 Pay salaries to employees for work in 2021, $38,000.
4. October 1 Purchase rental space for one year, $27,000.
5. November 17 Purchase supplies on account, $37,000.
6. December 30 Pay dividends, $3,500.

The following information is available on December 31, 2021:

  1. Employees are owed an additional $5,500 in salaries.
  2. Three months of the rental space has expired.
  3. Supplies of $6,500 remain on hand.
  4. All of the services associated with the beginning deferred revenue have been performed.

  • Requirement
  • General Journal
  • General Ledger
  • Trial Balance
  • Income Statement
  • Statement of SE
  • Balance Sheet

Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

.....

  • Record the entry to close the expense accounts.

Note: Enter debits before credits.

Date Account Title Debit Credit
Dec 31

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