The following transactions pertain to Price Corporation for 2016:
Jan. 1 Began operations when the business acquired $25,000 cash from the issue of common stock.
Mar. 1 Paid rent for office space for two years, $8,400 cash.
Apr. 14 Purchased $400 of supplies on account.
June 30 Received $12,000 cash in advance for services to be provided over the next year.
July 5 Paid $300 of the accounts payable from April 14.
Aug. 1 Billed a customer $4,800 for services provided during July.
Aug. 8 Completed a job and received $1,600 cash for services rendered.
Sept. 1 Paid employee salaries of $18,000 cash.
9 Received $4,250 cash from accounts receivable.
Oct. 5 Billed customers $17,000 for services rendered on account.
Nov. 2 Paid a $500 cash dividend to the stockholders.
Dec. 31 Adjusted records to recognize the services provided on the contract of June 30.
Dec. 31 Recorded $1,100 of accrued salaries as of December 31.
Dec. 31 Recorded the rent expense for the year. (See March 1.)
Dec. 31 Physically counted supplies; $50 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 and calculate the account balances.
c. Prepare a trial balance.
d. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows.
e. Prepare the closing entries at December 31.
f. Prepare a trial balance after the closing entries are posted.