Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The general ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Debits $ 25,900 16,700 14,600 161,000 Accounts Cash Accounts
The general ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Debits $ 25,900 16,700 14,600 161,000 Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals $ 8,000 7,100 156,000 47,100 $218,200 $218,200 The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, $147,100, and on account, $58,700. 2. February 12 Collect on accounts receivable, $52,800. 3. April 25 Receive cash in advance from customers, $14,200. 4. May 6 Purchase supplies on account, $11,800. 5. July 15 Pay property taxes, $9,800. 6. September 10 Pay on accounts payable, $12,700. 7. October 31 Pay salaries, $136,600. 8. November 20 Issue shares of common stock in exchange for $40,000 cash. 9. December 30 Pay $4,100 cash dividends to stockholders. Insurance expired during the year is $8,300. Supplies remaining on hand at the end of the year equal $4,200. Provide services of $13,100 related to cash paid in advance by customers. 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 9). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 10-12). 3. Review the adjusted 'Trial Balance' as of December 31, 2021. 4. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 13-15)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started