Question

Raider Consulting Corp began operations on January 1, 2020. They issued 13,500 shares of $2 par value common stock Chart of Accounts: 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Common Stock, $2 par 32 Paid in Capital in Excess of Par 33 Retained Earnings 34 Dividends Declared 41 Fees Earned 51 Salaries Exp 52 Rent Exp 53 Supplies Exp 54 Depreciation Exp 55 Insurance Exp 56 Advertising Exp 59 Misc Exp Raider Consulting Trial Balance January 31, 2020 Credits Debits 25,680 3,400 1,350 3,200 2,200 16,300 Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equip Accumulated Depr Accounts Pay Salaries Pay Unearned Fees Common Stock Paid in Capital in excess of par Retained Earnings 380 650 450 2,250 35,000 2,300 11,100

a.) Prepare an income statement, a statement of shareholders' equity, and a balance sheet
b.) determine net income, close the nominal (temp) accounts, and determine the beginning balances in each column for the first day of the following month

Answer 1

Prepare journal entries as follows:

Date	Account Title	Debit	Credit
February
3	Cash	$900
	Unearned fees		$900
5	Cash	$1,500
	Accounts receivable		$1,500
7	Salary expense	$950
	Salaries pay	$450
	Cash		$1,400
9	Advertisment expense	$350
	Cash		$350
13	Accounts payable	$350
	Cash		$350
15	Accounts receivable	$5,000
	Fees earned		$5,000
17	Cash	$5,000
	Accounts receivable		$5,000
18	Cash (800 × $2.5)	$2,000
	Common stock (800 × $2)		$1,600
	Paid in capital in excess of par		$400
20	Supplies	$700
	Accounts payable		$700
21	Salaries expense	$950
	Cash		$950
21	Accounts receivable	$2,500
	Fees earned		$2,500
25	Cash	$2,000
	Fees earned		$2,000
27	Cash	$4,550
	Accounts receivable		$4,550
28	Misc expenses	$250
	Cash		$250
28	Misc expenses	$300
	Cash		$300
29	Cash	$2,875
	Fees earned		$2,875
29	Accounts receivable	$2,550
	Fees earned		$2,550
29	Dividend	$6,500
	Cash		$6,500