Question

The following transactions pertain to Smith Training Company for Year 1:

Jan.	30		Established the business when it acquired $46,000 cash from the issue of common stock.
Feb.	1		Paid rent for office space for two years, $16,100 cash.
Apr.	10		Purchased $890 of supplies on account.
July	1		Received $27,000 cash in advance for services to be provided over the next year.
	20		Paid $668 of the accounts payable from April 10.
Aug.	15		Billed a customer $9,300 for services provided during August.
Sept.	15		Completed a job and received $3,500 cash for services rendered.
Oct.	1		Paid employee salaries of $34,500 cash.
	15		Received $7,900 cash from accounts receivable.
Nov.	16		Billed customers $30,500 for services rendered on account.
Dec.	1		Paid a dividend of $1,400 cash to the stockholders.
	31		Adjusted records to recognize the services provided on the contract of July 1.
	31		Recorded $2,050 of accrued salaries as of December 31.
	31		Recorded the rent expense for the year. (See February 1.)
	31		Physically counted supplies; $100 was on hand at the end of the period.

1.Record the preceding transactions in the general journal, in the given order. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Post the transactions to T-accounts and calculate the account balances. (Round your answers to the nearest whole dollar amount.)

3. Prepare a trial balance (Round your final answers to the nearest whole dollar amount.)

4. Prepare an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1. (Round your final answers to the nearest whole dollar amount. Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.)

Answer 1

Credit Accounts Receivable Service Revenue $ 9,300 Cash Service Revenue $ 30,500 End.Bal $ 39,800 $ 46,000 $ $ $ 7,900 31.900 | 39,800 $ 16,100 $ 668 $ 34,500 $ 1,400 $ 31,732 $ 84,400 $ Cash Common Stock $ 46,000 Prepaid Rent Unearned Revenue $ 27,000 Account payable Service Revenue $ 3,500 Salaries Expenses Accounts Receivable $ 7,900 Dividend End.bal $ 84,400 Common Stock End.bal $ 46,000 Cash $ 46,000 16,100 $ 890 36,550 Cash Salaries Payable $ 27,000 $ 46,000 $ 46,000 36,550 $ 668 Cash Salaries Expenses $ 34,500 Income Statement $ $ 2,050 $ 36,550 R $ Dividend $ 1,400 End.Bal $ $ 1,400 $ Salaries Payable $ 2,050 Salaries Expenses $ 2,050 $ Rent Expenses $ 7,379 Income Statement $ $ 7,379 $ 1,400 1.400 $ 9,300 Cash End.Bal 2,050 2,050 $ Date Account title Debit Jan-30 Cash $ 46,000 Common Stock Feb-01 Prepaid Rent $ 16,100 Cash Apr-10 Supplies $ 890 Account payable Jul-01 Cash $ 27,000 Unearned Revenue Jul-20 Account payable 668 Cash Aug-15 Accounts Receivable $ 9,300 Service Revenue Sep-15 Cash $ 3,500 Service Revenue Oct-01 Salaries Expenses $ 34,500 Cash Oct-15 Cash $ 7,900 Accounts Receivable Nov-16 Accounts Receivable $ 30,500 Service Revenue Dec-01 Dividend $ 1,400 Cash Dec-31 Unearned Revenue $ 27,000 Service Revenue Dec-31 Salaries Expenses $ 2,050 Salaries payable Dec-31 Rent Expenses $ 7,379 Prepaid Rent Dec-31 Supplies Expenses $ 790 Supplies 3,500 $ 34,500 Account payable Prepaid Rent 7,379 7,379 $ 7,900 $ 30,500 Supplies Cash End.Bal Prepaid Rent $ 16,100 Rent Expenses $ 7,379 End.bal $ 8,721 $ 16,100 $ 16,100 Supplies $ 890 Supplies expenses $ 790 | End.Bal $ 100 $ 890 $ 890 Account payable $ 668 Supplies $ 890 $ 222 $ 890 $ 890 Unearned Revenue $ 27,000 Cash $ 27,000 $ 27,000 $ 27,000 Service Revenue $ 70,300 Accounts Receivable $ 9,300 Cash $ 3,500 Accounts Receivable $ 30,500 Unearned Revenue $ 27,000 $ 70,300 $ 70,300 Supplies Expenses $ 790 Income Statement $ $ 790 $ 790 790 $ 1,400 $ 27,000 Service Revenue $ 2,050 16100*11/24 Income Summary $ 7,379 890-100 $ 790

70,300 $ 46,000 Income Statement Service Revenue $ Less: Expenses Supplies Expenses $ Rent Expenses $ Salaries Expenses $ Net Income $ 790 7,379 36,550 25,581 $ 222 Trial Balance Cash $ 31,732 Accounts Receivable $ 31,900 Common Stock Prepaid Rent $ 8,721 Supplies $ 100 Account payable Dividend $ 1,400 Salaries Payable Service Revenue Supplies Expenses $ 790 Rent Expenses $ 7,379 Salaries Expenses $ 36,550 $1,18,572 $ 72,453 $ 72,453 $ $ 2,050 70,300 Balance Sheet Assets Current Assets: Cash | $ 31,732 Accounts Receivable $ 31,900 Prepaid Rent $ 8,721 Supplies $ 100 Total Current Assets Total Assets Liabilities & Stcokholder's Equity Current Liabilities: Account payable $ 222 Salaries Payable $ 2,050 Total Current Liabilities Stockholder's Equity Common Stock Total Liabilities & Stockholder's Equity Changes in Stock holder's Equity Opening Common Stock $ 46,000 Add: Net Income $ 25,581 Less: Dividend $ -1,400 Closing Common Stock $ 70,181 $1,18,572 $ 2.272 $ 71,581 $ 73,853