Question
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:
- Employees are owed an additional $5,500 in salaries.
- Three months of the rental space has expired.
- Supplies of $6,500 remain on hand.
- 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.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started