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. 2. February 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. 5. Record adjusting entries. Insurance expired during the year is $9,000. Supplies remaining on hand at the end of the year equal $4,900. Provide services of $13,800 related to cash paid in advance by customers. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No General Journal Debit Credit Transaction December 31 1 2 December 31 December 31

Answer 1

Adjusting enries N. Transcutiond Cheher al Joun al bebit creddit Insurance Dec 31 expen se To prepaid 9.000 gooo Insyrane C Insurane eapired) 8 3,00 Dec 3) 83,00. arvadsea a!jddns To Supplies Account c supplig used during the Year) 13,80 Deferned fevenue pec: 31 3- 13,800 To Seruice Revenue e (oourde seruice revenul to customurs cash paid in advane)

STOPAGE ZIPS Statement Income for the Yeay ended Dec 312421 Seruice fovenue 230,100 Eapenser: 143,60 Sala sier espene supplies spene 83,00 9, ow In suraui expense 10,5w 0.ypense 171,40 •xpenje Tutal 58,700 Incane Net STOLAGE TJPS Retaimed Eaining s Statement ef pec 31 202| ended Year fo the 6alance 48500 openi ng Income Add: Net 5६१८७ 107,20 le ss - Djviclouds 4800 |02,400

ZIP S STOPAGE Balance Sheet Decembry 31,202 Assets l'abilities current Asset s- current liabilities} A ccount s Payable 12 3,8 w Cash Account Recievable Revence 2 6, l00 peferred Poepaid Insuanll Supplies 7,000 Tatal current liabilitist 17,4ou equity stock earning l02,4 Total stech holde. equti 312,4w 4goo Stockhuldeos Total curreut A ssits 161,80 214o0 Common Long tem A ssets- Laved Retained 1 68000 829,8 32 9,8 0

Cash Pauticulas fauticulars ل Ant sate Pamt Jant To 6al 6ld JdeyiŚ ] Prupesty Texes 26, 600 ro, sou Accounts Sepio Service kevenue 154,100 Janig rayable |3,५०० Account Recievabll 53.500 oct3) Salari es Feb·l2 143,600 Dividends pec. 3u ч,800 Peferied Revencue 14,900 Apr ll BYb al cld 123,800 pec 31 Common stck ५१,००० 294 lo0 29 6, 100 To b al 61d Jahi 123,800 Account Recievable Ruhielars Am t Particulas Date Aont Aate By Feb 12 17,५०० cash 53,500 Jar| To bal 6ld 62,200 Servicu kevenue Jang By 6all of 26100 Dec 3) 79,600 79,600 To bal 61d 26, 100 Janil' frepaid Insurance Pauticulars A ate Amt sate fauticulars Amt To 6 al bld Janil 16,000 Pec3) Insurame రాలా eapense pec- 31 By 6aeld 7,000 19000 Janl 16000 Tobalald 7,000

Accounts fayable Pauticulaus Deite Amt Pauticular date Jan l By bal bld By Saupplies To ca sh 8700 Sep 110 13,4 00 May 6 13,200 Dec 31 To 6af cld 8 500 21,90 21,900 Jan 'I By bal bld 8 5W Deferied Revenue Parhiulass Pauticulars pate Amt seruica Kevence 13,8 00 8, goo 7,800 6al 6ld Jan'l Dee 3) To Aprilas By 14,go0 Cash To 6 al ld 22,70 22,700 8 goo By 6 cet bld Jan') stock Common Pauticulars Aon t sate Pauticulas Amt 163,000 By balbld Dec3l Jarl To 47,000 By carh Nov20 B4 Galbld Janl Service kevenue BY carh By Accouit Re 8y deforred 154,100 Tobal Cld 23, 100 Jan g Pec3) 62, 202 Jan'9 Decs1 13,8 0 Reuenue 230 I00 23q lo0 23410 By Gal old "Jan!

supplics Pauticulas Amt sate Pauhicaelars 1pate Amt May 6/ To Accounts Pay able pec3) 8y supplies ezpenet 83o0 13,200 |oecso By bal ld y goo 13,200 13,20 Jan'l To balbld ч д00 Propesty tox Expenjc Parhieulars pate Pauticelaus Aon - sute 8у 6авс4 July I5 To cash pec-31 To500 10jco T. b-albld 10,500 Salaiel Espenge To cash act 3) 143600 143,6c0 pers) Ву балаd 143GW To ballld 143,600 pivi dends De C 30 To cash Dec 3) 8y6ælld Jar'l Tobalela

aachea ajdehs Rauticelaus fauticilan Amt bata To Supplies By 6alld DecJ) ресз) To 6 alblg Janl Insurame e apenje Pauhicaulas pate Pale Amt Particulan Tu Piepaid Insura 8y 6 al dd goo0 Dec1 Deo l gooo gooo To 6albld 9,000

A dtjusted Tiail balance Accauuts credi t bebit cash 123,800 Recievable A ccount 2 6,100 In surance prepaid 168 000 Land Payable 8500 Accouts Revence 8900 Peferred stock Common 210,000 48,500 Retained earnlngs 230,100 sepuice Reuencee supplies 4.g00 Taa expenses 9,ర sala ries 143,600 e xpense 4800 pividends Stupplies esp ense n surane eapense 9,000 5o6,000 50fo0