Required information Problem 3-32A Comprehensive problem: single cycle LO 3-1, 3-2, 3-3, 3-4 [The following information applies to the questions displayed below.] The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $51,000 cash from the issue of common stock. 1 Paid rent for office space for two years, $17,500 cash. Feb Apr. 10 Purchased $890 of supplies on account. July 1 Received $29,500 cash in advance for services to be provided over the next year 20 Paid $668 of the accounts payable from April 10. Aug. 15 Billed a customer $9,100 for services provided during August Sept. 15 Completed a job and received $2,600 cash for services rendered 1 Paid employee salaries of $31,500 cash. 15 Received $9,400 cash from accounts receivable. Oct Nov. 16 Billed customers $32,500 for services rendered on account. 1 Paid a dividend of $500 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,250 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $130 was on hand at the end of the period. Dec Cash Accounts Receivable Beg. Bal Beg. Bal 51,000 9,100 17,500 2/1 9,400 10/15 9,400 500 12/1 29,500 32,500 End. Bal 32,200 2,600 31,500 10/1 End. Bal 43,000 Prepaid Rent Supplies Beg. Bal Beg. Bal 890 17,500 760 12/31 8,021 12/31 End. Bal 9,479 130 End. Bal. Accounts Payable Unearned Revenue Beg. Bal Beg. Bal 890 4/10 29,500 7/1 668 End. Bal 29,500 222 Salaries Payable Common Stock Beg. Bal Beg. Bal 2,250 12/31 51,000 1/30 End. Bal End. Bal 2,250 51,000 Salaries Payable Common Stock Beg. Bal |Beg. Bal 2,250 12/31 51,000 1/30 2,250 End. Bal 51,000 End. Bal. Service Revenue Dividends Beg. Bal Beg. Bal 9,100 8/15 500 2,600 9/15 End. Bal 500 32,500 11/16 14,750 End. Bal 29,450 Salaries Expense Rent Expense Beg. Bal Beg. Bal. 2,250 8,021 End. Bal 8,021 End. Bal 2,250 Supplies Expense Beg. Bal 760 End. Bal 760 SMITH TRAINING COMPANY Trial Balance December 31, Year 1 Account Titles Debit Credit $ 51,000 Common stock Prepaid rent 9,479 Supplies expense 760 Cash Accounts payable 222 Service revenue Dividends 500 Accounts receivable Unearned revenue Service revenue 29,500 Rent expense 8,021 Supplies 130 |$ 48,390 $ 51,222 Totals SMITH TRAINING COMPANY Financial Statements For the Year Ended December 31, Year 1 Income Statement Expenses Total expensses 0 Statement of Changes in Stockholders' Equity $ Total Stockholders' Equity O SMITH TRAINING COMPANY Balance Sheet As of December 31, Year 1 Assets 0 Total assets Liabilities $ Total liabilities O Stockholders' Equity Total stockholders' equity $ Total liabilities and stockholders' equity 0 SMITH TRAINING COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities: Net cash flow from operating activities $ 0 Cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities 0 0 $ 0 Ending cash balance
