Question

Required information The general ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Debits $ 26,600 17,400 16,000 168,000 Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals $ 8,700 7,800 163,000 48,500 $228,000 $228,000 The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, $154,100, and on account, $62,200. ruary 12 Collect on accounts receivable, $53,500. 3. April 25 Receive cash in advance from customers, $14,900. 4. May 6 Purchase supplies on account, $13,200. 5. July 15 Pay property taxes, $10,500. 6. September 10 Pay on accounts payable, $13,400. 7. October 31 Pay salaries, $ 143,600. 8. November 20 Issue shares of common stock in exchange for $47,000 cash. 9. December 30 Pay $4,800 cash dividends to stockholders. 11. Prepare a post-closing trial balance.

Answer 1

Zips Storage Journal Enteries Date Particulars 9.1.2021 Cash a/c Dr. Accounts Receivable a/c Dr. To Service Revenue (Services provided) Debit in $ Credit in $ 154100 62200 216300 12.2.2021 53500 Cash a/c Dr. To Accounts Receivable (Being Cash received from debtors) 53500 25.4.2021 14900 Cash a/c Dr. To Deferred Revenue (Advance from client) 14900 6.5.2021 13200 Supplies a/c Dr. To Accounts Payable (Being Supplies purchased on account) 13200 Dr. 10500 15.7.2021 Property Tax Expense a/c To Cash (Property Taxes paid) 10500 13400 10.9.2021 Accounts Payable a/c Dr. To Cash (Being Accounts Payable paid in cash) 13400 143600 31.10.2021 Salaries and wages expense a/c Dr. To Cash (Being salaries and wages paid in cash) 143600 47000 20.11.2021 Cash a/c To Common Stock (Common Stock issued for cash) 47000 Dr. 4800 30.12.2021 Dividends a/c To Cash (Dividends paid) 4800 Adjusting Enteries Date Particulars 31.12.2021 Insurance Expense a/c To Prepaid Insurance (Insurance expensed) Dr. Debit in $ Credit in $ 9000 9000 Dr. 8300 31.12.2021 Supplies Expense a/c To Supplies (Supplies Expensed) 8300 Dr. 13800 31.12.2021 Deferred Revenue a/c To Service Revenue (Revenue recorded) 13800

Work sheet For the period ending 31.12.2021 Particulars Cash Accounts Receivable Prepaid Insurance Supplies Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Dividends Service Revenue Property Tax Expense Salaries and wages expense Insurance Expense Supplies Expense Totals Unadjusted Adjustments Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 123800 123800 123800 26100 26100 26100 16000 9000 7000 7000 13200 8300 4900 4900 168000 168000 168000 8500 8500 8500 22700 13800 8900 8900 210000 210000 210000 48500 48500 102400 4800 4800 216300 13800 230100 10500 10500 143600 143600 9000 9000 8300 8300 506000 506000 31100 3 1100 506000 506000 329800 329800 230100 Statement of Income For the period ending 31.12.2021 Service Revenue Less: Property Tax Expense Salaries and wages expense Insurance Expense Supplies Expense Net Income 10500 143600 9000 8300 171400 58700 Statement of Retained Earnings For the period ending 31.12.2021 Beginning Balance Net Income 48500 58700 107200 -4800 102400 Dividends

Balance sheet As at 31.12.2018 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Supplies Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Liabilities 123800 Accounts Payable 8500 26100 Deferred Revenue 8900 17400 7000 4900 161800 Shareholders equity Common Stock 210000 168000 Retained Earning 102400 3 12400 329800 Total Liabilities & equity 329800 Non Current Assets Land Total Assets