Question

Required information [The following information applies to the questions displayed below.) The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $53,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $17,500 cash. Apr. 10 Purchased $830 of supplies on account. July 1 Received $23,500 cash in advance for services to be provided over the next year. 20 Paid $623 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 $2,700 cash for services rendered. Oct. 1 Paid employee salaries of $32,000 cash. 15 Received $9,100 cash from accounts receivable. Nov. 16 Billed customers $31,000 for services rendered on account. Dee. 1 Paid a dividend of $500 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,100 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See Pebruary 1.) 31 Physically counted supplies; $60 was on hand at the end of the period. Required a. Record the preceding transactions in the general journal, in the given order. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 8 6 ... 15 2 3 4 5

Answer 1

Journal Entries in the books of Smith Training Company in Year 1

Date	Account Titles and Explanations	Debit	Credit
Jan-30	Cash A/c	$53,000
	Common Stock A/c		$53,000
	[To record issue of Common Stock]
Feb-01	Rent A/c ($17,500 / 24)	$729
	Prepaid Rent A/c	$16,771
	Cash A/c ($17,500 - $729)		$17,500
	[To record rent paid for two years]
Apr-10	Supplies A/c	$830
	Accounts Payable A/c		$830
	[To record purchase of supplies]
Jul-01	Cash A/c	$23,500
	Unearned Revenue A/c		$23,500
	[To record cash in advance received for services]
Jul-20	Accounts Payable A/c	$623
	Cash A/c		$623
	[To record Accounts payable paid]
Aug-15	Accounts Receivable A/c	$9,300
	Services Revenue A/c		$9,300
	[To record Accounts receivable from customers]
Sep-15	Cash A/c	$2,700
	Services Revenue A/c		$2,700
	[To record cash received from services]
Oct-01	Salaries Expense A/c	$32,000
	Cash A/c		$32,000
	[To record salaries paid]
Oct-15	Cash A/c	$9,100
	Accounts Receivable A/c		$9,100
	[To record Accounnts Receivable received]
Nov-16	Accounts Receivable A/c	$31,000
	Services Revenue A/c		$31,000
	[To record accounts receivable for services rendered]
Dec-01	DividendsA/c	$500
	Cash A/c		$500
	[To record dividends paid]
Dec-31	Unearned Revenue A/c	$11,750
	Services Revenue A/c		$11,750
	[To record services revenue recognised]
Dec-31	Salaries Expense A/c	$2,100
	Salaries Payable A/c		$2,100
	[To record  salaries accrued]
Dec-31	Rent Expense A/c [($17,500/2)-$729]	$8,021
	Prepaid Rent A/c		$8,021
	[To record  rent accrued]
Dec-31	Supplies Expense A/c ($830 - $60)	$770
	Supplies A/c		$770
	[To record supplies expensed]