Question

wnat 1g Correct or incorrect for the work you have completed so far. It does not indicate completion. Return to 2 The following transactions pertain to Smith Training Company for Year 1 Jan. 30 Established the business when it acquired $45,000 cash from the issue of common stock Feb. 1 Paid rent for office space for two years, $24,000 cash Apr. 10 Purchased $3,200 of supplies on account July 1 Received $24,000 cash in advance for services to be provided over the next year Aug. 15 Billed a customer $18,000 for services provided during August oct. 1 Paid employee salaries of $12,000 cash Nov. 16 Billed customers $42,000 for services rendered on account Part 2 of 6 20 Paid $1,500 of the accounts payable from April 10 pleted a job and received $8, 400 cash for services rendered polnts 15 Received $15,000 cash from accounts receivable Dec. 1 Paid a dividend of $15,000 cash to the stockholders services provided on the contract of July 1 31 Adjusted records to recognize the 31 Recorded $3,600 of acerued salaries as of December 31 the rent expense for the year. (see February 1.) 31 Physically counted supplies: $280 was on hand at the end of the period b. Post the transactions to T-accounts and calculate the account balances. & Answer is not complete. Cash Beg. Bal 10/1 O 12.0000 10/1 015 15,000 11/16 42,000 End. Ba End. Bal. 114,000 Beg. Bal Beg. Bal

Answer 1

Solution

T accounts:

Cash

1/30	45,000	2/1	24,000
7/1	24,000	7/20	1,500
9/15	8,400	10/1	12,000
10/15	15,000	12/1	15,000
Bal.	39,900

Account receivable

8/15	18,000	10/15	15,000
11/16	42,000
Bal.	45,000

Prepaid rent

2/1	24000	12/31	11000
Bal.	13000

Supplies

4/10	3200	12/31	2920
Bal.	280

Account payable

7/20	1500	4/10	3200
		Bal.	1700

Unearned revenue

12/31	12000	7/1	24000
		Bal.	12000

Salaries payable

		12/31	3600
		Bal.	3600

Common stock

		1/30	45000
		Bal.	45000

Dividends

12/1	15000
Bal.	15000

Service revenue

		8/15	18000
		9/15	8400
		11/16	42000
		12/31	12000
		Bal.	80400

Rent expense

12/31	11000
Bal.	11000

Salaries expense

10/1	12000
12/31	3600
Bal.	15600

Supplies expense

12/31	2920
Bal.	2920