Question

Prepare an adjusted trial balance

Required information The following information applies to the questions displayed below.) On January 1, 2021, Red Flash Photography had the following balances: Cash, $24,000; Supplies, $9,200, Land, $72.000; Deferred Revenue, $6,200, Common Stock $62,000; and Retained Earnings, $37,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $32,000. 2. May 20 Provide services to customers for cash, $47,000, and on account, $42,000. 3. August 31 Paysalaries to employees for work in 2021, $35,000. 4. October 1Purchase rental space for one year, $24,000. 5. November 17 Purchase supplies on account, $34,000. 6. December 30 Pay dividends, $3,200. The following information is available on December 31, 2021: 1. Employees are owed an additional $5,200 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $6,200 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed, 3. Prepare an adjusted trial balance.

Answer 1

Adjusted Trial Balance Account Title Debit Credit 24000+32000+47000-35000-24000-3200 Cash $ 40,800 9200+34000-37000 Supplies $ 6,200 24000-6000 Prepaid Rent $ 18,000 Accounts receivable $ 42,000 Land $ 72,000 Accounts Payable $ 34,000 Salaries Payable $ 5,200 6200-6200 Deferred Revenue $ - 62000+32000 Common stock $ 94,000 Retained Earnings $ 37,000 Dividend $ 3.200 47000+42000+6200 Service Revenue $ 95,200 35000+5200 Salaries Expenses $ 40,200 24000*3/12 Rent Expenses $ 6,000 43200-6200 Supplies expenses 37000 $ 2,65,400 $2,65,400