Required information

Skip to question

[The following information applies to the questions displayed below.]

On January 1, 2024, Red Flash Photography had the following balances: Cash, $23,000; Supplies, $9,100; Land, $71,000; Deferred Revenue, $6,100; Common Stock $61,000; and Retained Earnings, $36,000. During 2024, the company had the following transactions:

1. February 15Issue additional shares of common stock, $31,000.2. May 20Provide services to customers for cash, $46,000, and on account, $41,000.3. August 31Pay salaries to employees for work in 2024, $34,000.4. October 1Purchase rental space for one year, $23,000.5. November 17Purchase supplies on account, $33,000.6. December 30Pay dividends, $3,100.

The following information is available on December 31, 2024:

1. Employees are owed an additional $5,100 in salaries.
2. Three months of the rental space have expired.
3. Supplies of $6,100 remain on hand. All other supplies have been used.
4. All of the services associated with the beginning deferred revenue have been performed.

3. Prepare an adjusted trial balance.