Question

The following information applies to the questions displayed below.) The general ledger of Zips Storage at January 1, 2018, includes the following account balances: Credits Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Debits $ 24,600 15,400 12,000 148,000 $ 6,700 5,800 143,000 44.500 Totals $200,000 $200,000 The following is a summary of the transactions for the year: a. January 9 Provide storage services for cash, $134100, and on account, $52.200. b. February 12 Collect on accounts receivable, $51,500. C. April 25 Receive cash in advance from customers, $12.900. d. May 6 Purchase supplies on account. $9,200. e. July 15 Pay property taxes, $8,500. f. September 10 Pay on accounts payable, $11,400. g. October 31 Pay salaries, $123,600. h. November 20 Issue shares of common stock in exchange for $27,000 cash. December 30 Pay $2,800 cash dividends to stockholders. J. Insurance expired during the year is $7,000. Supplies remaining on hand at the end of the year equal $2,900. Provide services of

Record transactions, post journal entries, prepare an unadjusted and adjusted trial balance, prepare the income statement and balance for the year ended dec 31, 2018, record closing entries and prepare a post-closing trial balance

Answer 1

recording of the transactions

Event	Journal entries	Dr. ($)	Cr. ($)
Jan-09	cash	134100
	accounts receivable	52200
	To service revenue		186300
	(being services provided for cash and on account)
Feb-12	cash	51500
	To accounts receivable		51500
	(being payment received from accounts receivable)
Apr-25	cash	12900
	To deferred revenue		12900
	(being advance payment received from customer)
May-06	supplies	9200
	To accounts payable		9200
	(being supplies purchased on account)
Jul-15	property tax expense	8500
	To cash		8500
	(being property tax paid in cash)
Sep-10	accounts payable	11400
	To Cash		11400
	(being accounts payable paid in cash)
Oct-31	salaries expense	123600
	To cash		123600
	(being salary paid in cash)
Nov-20	cash	27000
	To common stock		27000
	(issuance of common stock for cash)
Dec-30	dividends	2800
	To cash		2800
	(being cash dividends paid to stockholders)

posting of entries

cash		accounts receivable
Beg.Bal	24600	Jul-15	8500		Beg.Bal	15400	Feb-12	51500
Jan-09	134100	Sep-10	11400		Jan-09	52200
Feb-12	51500	Oct-31	123600		Bal.	16100
Apr-25	12900	Dec-30	2800
Nov-20	27000
Bal.	103800
prepaid insurance		land
Beg.Bal	12000				Beg.Bal	148000
Bal.	12000				Bal.	148000

supplies
May-06	9200
Bal.	9200

accounts payable
Sep-10	11400	Beg.Bal	6700
		May-06	9200
		Bal.	4500

deferred revenue
		Beg.Bal	5800
		Apr-25	12900
		Bal.	18700

common stock
		Beg.Bal	143000
		Nov-20	27000
		Bal.	170000
service revenue
		Jan-09	186300
		Bal.	186300

Retained earnings
		Beg.Bal	44500
		Bal.	44500
property tax expense
Jul-15	8500
Bal.	8500

dividends
Dec-30	2800
Bal.	2800
salaries expense
Oct-31	123600
Bal.	123600

Zips Storage
Unadjusted Trial Balance
Dec. 31, 2018
Accounts	Dr. ($)	Cr. ($)
cash	103800
accounts receivable	16100
prepaid insurance	12000
supplies	9200
land	148000
accounts payable		4500
deferred revenue		18700
common stock		170000
retained earnings		44500
dividends	2800
service revenue		186300
salaries expenses	123600
property tax expenses	8500
total	424000	424000

	Adjusting journal entries	Dr. ($)	Cr. ($)
AD 1	insurance expenses	7000
	To prepaid insurance		7000
	(being adjustment made of expired insurance)
AD 2	supplies expenses	6300
	To supply		6300
	(adjustment made for supplies used)
AD 3	deferred revenue	11800
	To service revenue		11800
	(being adjustment made for earned revenue)

posting the adjustment entries into t-accounts

insurance expense		supplies expenses
AD 1	7000				AD 2	6300
Bal.	7000				Bal.	6300
prepaid insurance		supply
Beg.	12000	AD 1	7000		Beg.	9200	AD 2	6300
Bal.	5000				Bal.	2900
deferred revenue		service revenue
AD 3	11800	Beg.	18700				Beg.	186300
		Bal.	6900				AD 3	11800
							Bal.	198100

adjusted trial balance

income statement

balance sheet

Zips Storage
Adjusted Trial Balance
Dec. 31, 2018
Accounts	Dr. ($)	Cr. ($)
cash	103800
accounts receivable	16100
prepaid insurance	5000
supplies	2900
land	148000
accounts payable		4500
deferred revenue		6900
common stock		170000
retained earnings		44500
dividends	2800
service revenue		198100
salaries expenses	123600
insurance expenses	7000
property tax expenses	8500
supplies expenses	6300
total	424000	424000
Zips Storage
Income Statement
For the year ended Dec.31, 2018		amount ($)
service revenue		198100
less: expenses
salaries expenses	123600
insurance expenses	7000
property tax expenses	8500
supplies expenses	6300
net income		52700
Zips Storage
Balance Sheet
Dec. 31, 2018	amount ($)	amount ($)
Assets
current
cash	103800
accounts receivable	16100
prepaid insurance	5000
supplies	2900
total current assets		127800
long-term assets
land	148000
total long-term assets		148000
total assets		275800
Liabilities and stockholders equity
current liabilities
accounts payable	4500
deferred revenue	6900
total current liabilities		11400
long-term liabilities		0
total liabilities		11400
stockholders equity
common stock		170000
retained earnings unadjusted	44500
add:net income	52700
less:dividends	2800
retained earnings adjusted		94400
total liabilities and stockholders equity		275800