Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help answer the question fully with explanations. The following transactions pertain to Smith Training Company for Year 1: January 30 Established the business when

Please help answer the question fully with explanations.

The following transactions pertain to Smith Training Company for Year 1:

January 30 Established the business when it acquired $45,000 cash from the issue of common stock.
February 1 Paid rent for office space for two years, $24,000 cash.
April 10 Purchased $3,200 of supplies on account.
July 1 Received $24,000 cash in advance for services to be provided over the next year.
July 20 Paid $1,500 of the accounts payable from April 10.
August 15 Billed a customer $18,000 for services provided during August.
September 15 Completed a job and received $8,400 cash for services rendered.
October 1 Paid employee salaries of $12,000 cash.
October 15 Received $15,000 cash from accounts receivable.
November 16 Billed customers $42,000 for services rendered on account.
December 1 Paid a dividend of $15,000 cash to the stockholders.
December 31 Adjusted records to recognize the services provided on the contract of July 1.
December 31 Recorded $3,600 of accrued salaries as of December 31.
December 31 Recorded the rent expense for the year. (See February 1.)
December 31 Physically counted supplies; $280 was on hand at the end of the period.

Required a. Record the preceding transactions in the general journal.

b. Post the transactions to T-accounts. (You will also post the closing entries in Req E to these T-accounts.)

c. Prepare an adjusted Trial Balance.

d-1. Prepare an income statement for Year 1.

d-2. Prepare a statement of changes in stockholders equity for Year 1.

d-3. Prepare a balance sheet for Year 1.

d-4. Prepare a statement of cash flows for Year 1.

e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal.

f. Prepare a post-closing trial balance for December 31, Year 1.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Prepare an income statement for Year 1. Complete this question by entering your answers in the tabs below. Prepare a statement of changes in stockholders' equity for Year 1

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

Students also viewed these Accounting questions