Question
The following events apply to Paradise Vacationss first year of operations: Acquired $20,000 cash from the issue of common stock on January 1, 2018. Purchased
The following events apply to Paradise Vacationss first year of operations: Acquired $20,000 cash from the issue of common stock on January 1, 2018. Purchased $800 of supplies on account. Paid $4,200 cash in advance for a one-year lease on office space. Earned $28,000 of revenue on account. Incurred $12,500 of other operating expenses on account. Collected $24,000 cash from accounts receivable. Paid $9,000 cash on accounts payable. Paid a $3,000 cash dividend to the stockholders. Information for Adjusting Entries There was $150 of supplies on hand at the end of the accounting period. The lease on the office space covered a one-year period beginning November 1. There was $3,600 of accrued salaries at the end of the period. Required a. Record these transactions in general journal form. b. Post the transaction data from the journal to ledger T-accounts. c. Prepare a trial balance. d-1. Prepare an income statement. d-2. Prepare a statement of changes in stockholders equity. d-3. Prepare a balance sheet. d-4. Prepare a statement of cash flows.
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