Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following events apply to Paradise Vacationss first year of operations: Acquired $33,000 cash from the issue of common stock on January 1, Year 1.

The following events apply to Paradise Vacationss first year of operations:

Acquired $33,000 cash from the issue of common stock on January 1, Year 1.

Purchased $1,450 of supplies on account.

Paid $5,760 cash in advance for a one-year lease on office space.

Earned $41,350 of revenue on account.

Incurred $14,450 of other operating expenses on account.

Collected $30,500 cash from accounts receivable.

Paid $9,650 cash on accounts payable.

Paid a $4,300 cash dividend to the stockholders.

Information for Adjusting Entries

There was $280 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 $4,900 of accrued salaries at the end of the period.

Required

Prepare a trial balance.

PARADISE VACATIONS
Trial Balance
As of December 31, Year 1
Account Titles Debit Credit
Totals

Prepare an income statement.

PARADISE VACATIONS
Income Statement
For the Year ended December 31, Year 1
Expenses
Total expenses

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

Recommended Textbook for

Word Search Puzzle Book For Auditing Clerk

Authors: Lx Antu

1st Edition

B09KN7YDD6, 979-8757688466

More Books

Students also viewed these Accounting questions