Question

Accounting Cycle Demo 2 The general ledger of Zip Storage at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 24,600 Accounts Receivable 15,400 Prepaid Insurance 12,000 Land 148,000 Accounts Payable $ 6,700 Deferred Revenue 5,800 Common Stock 143,000 Retained Earnings 44,500 Totals $200,000 $200,000 The following is a summary of the transactions for the year. 1. January 9 Provide storage services for cash, $134,100, and on account, $52,200. 2. February 12 Collect on accounts receivable, $51,500. 3. April 25 Receive cash in advance from customers, $12,900. 4. May 6 Purchase supplies on account, $9,200. 5. July 15 Pay property taxes, $8,500. 6. September 10 Pay on accounts payable, $11,400 7. October 31 Pay salaries, $123,600. 8. November 20 Issue shares of common stock in exchange for $27,000 cash. 9. December 30 Pay $2,800 cash dividends to stockholders. Record adjusting entries. Insurance expired during the year is $7.000. Supplies remaining on hand at the end of the year equal $2,900. Provide services of $11,800 related to cash paid in advance by customers. Required: 1. Prepare a complete set of accounting records and financial statements for 2021 for ZIP Storage. This includes: a. General Journal . Regular Journal Entries II. Adjusting Journal Entries ill. Closing Journal Entries b. General Ledger (T accounts) c. Unadjusted Trial Balance d. Adjusted Trial Balance e. Four Financial Statements

Answer 1

Account	Dr	Cr
1.Cash	$134,100
Accounts receivable	$52,200
Service revenue		$186,300
(Services provided for cash and on account)
2. Cash	$51,500
Accounts receivable		$51,500
(cash collected from accounts receivables)
3.Cash	$12,900
Deferred* revenue		$12,900
(cash received in advance for services to be provided)
4.Supplies expense	$9,200
Accounts payable		$9,200
(supplies purchased on account)
5.Property tax	$8,500
Cash		$8,500
(property tax paid in cash)
6.Accounts payable	$11,400
Cash		$11,400
(Accounts payable paid in cash)
7.Salaries	$123,600
Cash		$123,600
(salaries paid in cash)
8.Cash	$27,000
Common stock		$27,000
(common stock issued for cash)
9.Retained earnings	$2,800
Cash		$2,800
(cash dividend paid)
10.Insurance expense	$7,000
Prepiad insurance		$7,000
(expired insurance charged as expense)
11Deferred revenue	$11,800
Service revenue		$11,800
(Services provided in relation to advance received)

Cash Account

Service revenue	$134,100	Property tax	$8,500
Accounts receivable	$51,500	Accounts payable	$11,400
Deferred revenue	$12,900	Salaries	$123,600
Common stock	$27,000	Retained eranings	$2,800

Accounts receivable

Opening, balance	$15,400	Cash	$51,500
Service revenue	$52,200	Closing balance	$16,100

Prepaid insurance

Opening balance	$12,000	Insurance expense	$7,000
		Closing balance	$5,000

Deferred revenue

Service revenue	$11,800	Opening balance	$5800
Closing balance	$6900	Cash	$12,900

Accounts payable

Cash	$11,400	Opening balance	$6,700
Closing balance	$4,500	Supplies	$9,200

Common stock

Closing balance	$170,000	Opening balance	$143,000
		Cash	$27,000

Retained earnings

Cash dividends	$2,800	Opening balance	$44,500
Closing bal	$41,700

Supplies

Accounts payabale	$9,200	Opening balance(balancing figure)	12,100
Closing balance	$2,900