Question

The following events apply to Paradise Vacations's first year of operations: 1. Acquired $36,000 cash from the issue of common stock on January 1, 2018. 2. Purchased $1,600 of supplies on account. 3. Paid $6,120 cash in advance for a one-year lease on office space. 4. Earned $44,350 of revenue on account. 5. Incurred $14,900 of other operating expenses on account. 6. Collected $32,000 cash from accounts receivable. 7. Paid $9,800 cash on accounts payable. 8. Paid a $4,600 cash dividend to the stockholders. Information for Adjusting Entries 9. There was $310 of supplies on hand at the end of the accounting period. 0. The lease on the office space covered a one-year period beginning November 1 11. There was $5,200 of accrued salaries at the end of the period.

Answer 1

PARADISE VACATIONS
Trial Balance
As of December 31, 2018
Account titles	Debit	Credit
Cash ($36,000-$6,120+$32,000-$9,800-$4,600)	$   47,480
Accounts receivable ($44,350-$32,000)	$   12,350
Supplies	$        310
Prepaid rent ($6,120/12*10)	$     5,100
Accounts payable ($14,900+1,600-9,800)		$     6,700
Salaries payable		$     5,200
Common stock		$   36,000
Dividends	$     4,600
Service revenue		$   44,350
Salaries and wages expense	$     5,200
Rent expense ($6,120/12*2)	$     1,020
Supplies expense ($1,600-$310)	$     1,290
Other operating expense	$   14,900
Total	$   92,250	$   92,250

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