The following transactions pertain to Smith Training Company for Year 1: January 30 Established the business when it acquired $45,000 cash from the issue of common stock. February 1 Paid rent for office space for two years, $24,000 cash. April 10 Purchased $3,200 of supplies on account. July 1 Received $24,000 cash in advance for services to be provided over the next year. July 20 Paid $1,500 of the accounts payable from April 10. August 15 Billed a customer $18,000 for services provided during August. September 15 Completed a job and received $8,400 cash for services rendered. October 1 Paid employee salaries of $12,000 cash. October 15 Received $15,000 cash from accounts receivable. November 16 Billed customers $42,000 for services rendered on account. December 1 Paid a dividend of $15,000 cash to the stockholders. December 31 Adjusted records to recognize the services provided on the contract of July 1. December 31 Recorded $3,600 of accrued salaries as of December 31. December 31 Recorded the rent expense for the year. (See February 1.) December 31 Physically counted supplies; $280 was on hand at the end of the period. Required a. Record the preceding transactions in the general journal. b. Post the transactions to T-accounts. (You will also post the closing entries in Req E to these T-accounts.) c. Prepare an adjusted Trial Balance. d-1. Prepare an income statement for Year 1. d-2. Prepare a statement of changes in stockholders' equity for Year 1. d-3. Prepare a balance sheet for Year 1. d-4. Prepare a statement of cash flows for Year 1. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal. f. Prepare a post-closing trial balance for December 31, Year 1. No Date 1 Jan 30 Cash Common slock 2 Feb 01 Prepaid rent Cash General Journal Debit Credit 45,000 45,000 24,000 24,000 ' 3 Apr 10 Supplies 3,200 Accounts payable 3,200 4 Jul 01 Cash 24,000 Uneamed revenue 24,000 5 Jul 20 Accounts payable 1,500 Cash 1,500 6 Aug 15 Accounts receivable 18,000 Service revenue 18,000 7 Sep 15 Cash 8,400 Service revenue 8,400 B Oct 01 Salaries expense Cash 12,000 12,000 9. Oct 15 Cash 15,000 Accounts receivable 15,000 10 Nov 16 Accounts receivable 42,000 Service revenue 42,000 11 Dec 01 Dividends Cash 15,000 15,000 12 Dec 31 Unearned revenue 24,000 Service revenue 24,000 ' 13 Dec 31 Salaries expense Salaries payable 14 Dec 31 Rent expense 11,000 Prepaid rent 11,000 15 Dec 31 Supplies expense Supplies 2,920 2,920 Post the transactions to T-accounts. (You will also post the closing entries in Req E to these T-accounts.) Cash Beg. Bal 39,900 End. Bal 39,900 Beg. Bal End. Bal. Accounts Receivable Prepaid Rent Beg. Bal supplies Beg. Bal End. Bal End. Bal. Accounts Payable Unearned Revenue Beg. Bal Beg. Bal End. Bal Salaries Payable Beg. Bal 0 Common Stock Beg. Bal End. Bal. End. Bal. Retained Earnings Dividends Beg. Bal Beg. Bal End. Bal. End. Bal. Service Revenue Rent Expense Beg. Bal. Beg. Bal End. Bal End. Bal. Salaries Expense Supplies Expense Beg. Bal Beg. Bal End. Bal End. Bal. 0 0 0 Req A Req B Req C Req D1 Req D2 Req D3 Req D4 Req E Req F Prepare an adjusted Trial Balance. SMITH TRAINING COMPANY Trial Balance December 31, Year 1 Account Titles Debit Credit Totals $ 0 S < Req B Req D1 > Expenses SMITH TRAINING COMPANY Income Statement For the Year Ended December 31, Year 1 Total expenses 0 $ 0 SMITH TRAINING COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 0 0 Total Stockholders' Equity $ 0 Assets Total assets Liabilities SMITH TRAINING COMPANY Balance Sheet As of December 31, Year 1 Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ EA 0 $ 0 0 $ 0 SMITH TRAINING COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance EA $ 0 $ 0 $ EA 0 0 0 Journal entry worksheet 1 2 3 Record the closing entry for revenues. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit > Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the closing entry for expenses. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit 7 Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the closing entry for dividends. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Record entry Clear entry View general journal SMITH TRAINING COMPANY Post-Closing Trial Balance December 31, Year 1 Account Titles Debit Credit Totals $ 0 $ 0