Question

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

Jan.	30		Established the business when it acquired $48,000 cash from the issue of common stock.
Feb.	1		Paid rent for office space for two years, $17,400 cash.
Apr.	10		Purchased $880 of supplies on account.
July	1		Received $28,000 cash in advance for services to be provided over the next year.
	20		Paid $660 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 $2,600 cash for services rendered.
Oct.	1		Paid employee salaries of $31,000 cash.
	15		Received $8,700 cash from accounts receivable.
Nov.	16		Billed customers $31,500 for services rendered on account.
Dec.	1		Paid a dividend of $1,100 cash to the stockholders.
	31		Adjusted records to recognize the services provided on the contract of July 1.
	31		Recorded $2,500 of accrued salaries as of December 31.
	31		Recorded the rent expense for the year. (See February 1.)
	31		Physically counted supplies; $80 was on hand at the end of the period.

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

	SMITH TRAINING COMPANY Trial Balance December 31, Year 1 Account Titles Debit Credit Totals

Answer 1

Credit SMITH TRAINING COMPANY Trial Balance December 31, Year 1 Accounts Titles Debit Cash $37,140 Prepaid Rent $9,425 Supplies $80 Accounts Receivable $32,100 Accounts Payable Unearned Revenue Salaries Payable Common Stock Retained Earnings Totals $78,745 $220 $14,000 $2,500 $48,000 $14,025 $78,745

Workings Credit Debit $48,000 $48,000 $17,400 $17,400 $880 $880 $28,000 $28,000 $660 $660 $9,300 $9,300 $2,600 $2,600 Date Account Titles and Explanations 30-Jan Cash Common stock 1-Feb Prepaid rent Cash 10-Apr Supplies Accounts payable 1-Jul cash Unearned revenue 20-Jul Accounts payable Cash 15-Aug Accounts Receivable Service Revenue 15-Sep cash Service Revenue 1-Oct Salaries expense cash 15-Oct cash Accounts Receivable 16-Nov Accounts Receivable Service Revenue 1-Dec Dividend Cash 31-Dec Unearned revenue Service Revenue 31-Dec Salaries expense Salaries Payable 31-Dec Rent Expense Prepaid rent 31-Dec Supplies expense Supplies $31,000 $31,000 $8,700 $8,700 $31,500 $31,500 $1,100 $1,100 $14,000 $14,000 $2,500 $2,500 $7,975 $7,975 $800 $800

2) Retained Earnings Service Revenue Salary Dividend Rent ($17400 * 11/24) Supplies Expense $57,400 ($33,500) ($1,100) ($7,975) ($800) $14,025 The amount is the balance figure under each account