Question

The general ledger of FastTrack Racing at January 1, 2021, includes the following accou balances: Credits Debits $42,500 25,800 115,800 Accounts Cash Accounts Receivable Land Accounts Payable Notes Payable Common Stock Retained Earnings Totals 15,100 30,500 100,000 38,500 $184,100 $184,100 The following is a summary of the transactions for the year: a. Provide services to customers on account, $63,400. b. Provide services to customers for cash, $75,800. c. Collect on accounts receivable, $45,600. d. Issue shares of common stock in exchange for $32,000 cash. e. Purchase supplies on account, $12,700. f. Pay on accounts payable, $11,500. g. Pay salaries for employee work in the current year, $66,200. h. Pay advertising for the current year, $21,500. i. Pay $2,800 cash dividends to stockholders. Required: 1 Set in the necessary Taccounts and enter the beginning balances from the trial balanc

Answer 1

The UnadJustid Trial Balante Cash Accocents Recoivable Land Accounts Payable No fes Payable Common stock Retainod, Earnings ($) Debit eredit (4) 42s00 a5800 11S800 IS100 30500 100,000 38500 184.100 184,100 Adjushd Journab Entries SAccounts Reeeiv able Atc To Service Revenue Alc CBei ng Serviee provided to wotomes) Cash AlC To Sewice Revenue Alc (Being serrice providid to curfonmes for carh Debit ( (redit$I 63400 63 Y00 8ం 7S800 48600 Cash Alc To Accounts Reeeivabl Atc. (3uing, Conh toillect from Customes) O Cash Alc To Common stock Alc. (20ing common stocd is sued for lesh) O Supplies AlC To ACCOnks Pany ablu Mc (Being supplies puschan om Aecount) O Acco unts Receboadata Alc To Carh AC Cash paid to Aceounts Payab le) 32000 32000 12700 12700 Payable 11S 00 Iం C Buing

ndes the termene Salaries Alc Debit Credit To Cash Alc (hing 66200 Salaves Paid. in Cash) 66200 O Advo tising Alc To Cash (3uing Advutisement expenx paid) Cash Dividend Alc To Cash Ale (heing. cash dividend pard) AccruedyIn torypt Alc To Notes Payabk Ale (Being intucht ow Notes payable Aeerud) becacado Salaries Nc 21800 21S00 2800 2800 2800 2800 TO Acerud S alaries Atc 2500 (-Being, Salaried accured for the period) Intorest Alc To Aeerued Interen Ae (Being, Interest on Notes Payable AlC acerua) 2S06 12 2800 2810 Cash MC To Balance bld. To Sewiee Revenie To Accocunt Reeorable 45600 yas00 Pay Aeeoont payable 78800 By Salarics 0 11800 66200 21900 By Advirtising, Fxp. lash Dividond Pay a800 To Common Sto ch oplecte 3.2000 Pay Balanee e/d. 93900 ocoff adT 195900 195900

FRS and AA. erminologu The ad Jurtid Trial Balanee Cash Account Receivable (as80t 63 yo0 - 48%0) Land Accocent Pory able (IS100+ 12700-11500) ANotes Payable Common stoch (100,000t 32000) Retained faning Sowice Rovenue (6y001 75800) Supplies Supplis Used. S alari es (66200+ 2800) Adves tising, Eapeme Inturest ALC O Acerued Intunt ACcrued Salauics Cash Dividend. O00 '09 Debit Credit ) पउ9न0 43600 115800 16300 30.S00 132000 38S00 139200 2600 10,100 68700 21800 2800 2800 2300 2800 361,800 36180O In come statement Suvice Revenue (A) Gross Enpime Supplies useed Salav is Advatising Exp. Inturest on Noto Payable 7otal Expeme (B) Earning Betore, Tox. (A-B) len! (ash Divi cland Net Earnings (8) 18ga00 10,100 68700 21800 a800 03100 36,100 2800 83 300