Question
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.
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Prepare an income statement.
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