Question

on January 1, 2021 red flash photography had the following balance : Cash , $21,000 Supplies, $8,900 Land, $69,000, Deferred Revenue, $5,900 Common Stock $59,000 and Retained Earnings $34,000 during 2021, the company had the following transactions

1) February 15 Issue additional shares of common stock $29,9000

2) May 20 Provide services to customers for cash, $44,000 and on account $39,000

3) August 31 Pay salaries to employees for work in 2121 $32,000

4) October 1 Purchased rental space for one year $ 21,000

5) November 17 Purchased supplies on account $31,000

6) December 30 Pay dividends $2,900

The following information is available on december 31,2021

1. Employees are owed an additional $ 4,900 in salaries

2. three months of the rental space has expired

3. Supplies of 5,900 remain on hand

4. All of the services associated with the beginning deferred revenue have been performed

REQUIREMENTS

1. General journal

2. General ledger

3. Trail balance

4. Income statement

5. Statement of SE

6. Balance sheet

Answer 1

Red Flash Photography Journal Enteries Debit in $ Credit in $ Particulars Date 15.2.2021 Cash a/c 29000 Dr. To Common Stock 29000 (Common stock issued) 20.5.2021 Accounts Receivable a/c Dr. 44000 Cash a/c Dr. 39000 To Service Revenue 83000 (Services provided) 31.8.2021 Salary Expense a/c Dr. 32000 To Cash 32000 (Salary paid) 1.10.2021 Prepaid Rent a/c 21000 Dr. To Cash 21000 |(Advance rent for 1 year) 17.11.2021 Supplies a/c Dr. 31000 To Accounts Payable 31000 (Supplies on account) 30.12.2021 Dividends a/c Dr. 2900 To Cash 2900 (Dividends paid)

Adjusting Enteries Debit in $ Credit in $ Particulars Date 31.12.2021 Salary Expense a/c To Salary Payable Dr. 4900 4900 (Salary accrued) 31.12.2021 Rent Expense a/c Dr. 5250 To Prepaid Rent 5250 (Rent expensed) 21000 x 3/12 31.12.2021 Supplies Expense a/c 33100 Dr. To Supplies 33100 (Supplies expensed) 31000 + 8000 - 5900 31.12.2021 Deferred Revenue a/c Dr. 5900 5900 To Service Revenue (Services provided )

Worksheet For the period ending 31.12.2021 Adjustments Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Unadjusted Adjusted Particulars Cash 33100 33100 Accounts Receivable 44000 44000 Supplies 6800 39900 33100 Prepaid Rent 21000 5250 15750 Land 69000 69000 Accounts Payable 31000 31000 Salary Payable 4900 4900 Deferred 5900 5900 venue Common Stock 88000 88000 Retained Earnings 34000 34000 Dividends 2900 2900 5900 Service Revenue 83000 88900 Salary Expense 32000 4900 36900 Rent Expense 5250 5250 Supplies Expense 33100 33100 Totals 241900 241900 49150 49150 246800 246800 Statement of Income For the period ending 31.12.2021 Service Revenue 88900 Less: Salary Expense 36900 Rent Expense 5250 Supplies Expense 33100 75250 Net Income 13650 Statement of Retained Earnings For the period ending 31.12.2021 Beginning Balance 34000 Net Income 13650 47650 Dividends -2900 44750

Balance sheet As at 31.12.2021 Amounts in $ Amounts in $ Amounts in $ Amounts in $ Liabilities Assets Current Liabilities Current Assets Accounts Payable Cash 33100 31000 Accounts Receivable Salary Payable 4900 35900 44000 Supplies 6800 15750 Prepaid Rent 99650 Shareholders Equity Common Stock Non Current Assets 88000 69000 Retained Earnings Land 44750 132750 Total Asset 168650 Total Liabilities & Equity 168650