Question

What would the income statement and balance sheet look like for this problem?

The following is a summary of the transactions for the year:

1.		January		9		Provide storage services for cash, $137,100, and on account, $53,700.
2.		February		12		Collect on accounts receivable, $51,800.
3.		April		25		Receive cash in advance from customers, $13,200.
4.		May		6		Purchase supplies on account, $9,800.
5.		July		15		Pay property taxes, $8,800.
6.		September		10		Pay on accounts payable, $11,700.
7.		October		31		Pay salaries, $126,600.
8.		November		20		Issue shares of common stock in exchange for $30,000 cash.
9.		December		30		Pay $3,100 cash dividends to stockholders.

Insurance expired during the year is $7,300. Supplies remaining on hand at the end of the year equal $3,200. Provide services of $12,100 related to cash paid in advance by customers.

general journal:

No	Date	General Journal	Debit	Credit
1	January 09	Cash	137,100
		Accounts Receivable	56,700
		Service Revenue		193,800
2	February 12	Cash	51,800
		Accounts Receivable		51,800
3	April 25	Cash	13,200
		Deferred Revenue		13,200
4	May 06	Supplies	9,800
		Accounts Payable		9,800
5	July 15	Property Tax Expense	8,800
		Cash		8,800
6	September 10	Accounts Payable	11,700
		Cash		11,700
7	October 31	Salaries Expense	126,600
		Cash		126,600
8	November 20	Cash	30,000
		Common Stock		30,000
9	December 30	Dividends	3,100
		Cash		3,100
10	December 31	Insurance Expense	7,300
		Prepaid Insurance		7,300
11	December 31	Supplies Expense	6,600
		Supplies		6,600
12	December 31	Deferred Revenue	12,100
		Service Revenue		12,100
13	December 31	Service Revenue	205,900
		Retained Earnings		205,900
14	December 31	Retained Earnings	149,300
		Salaries Expense		126,600
		Insurance Expense		7,300
		Supplies Expense		6,600
		Property Tax Expense		8,800
15	December 31	Retained Earnings	3,100
		Dividends		3,100

Answer 1

First entry amount is incorrect

Correct entry will be

No	Date	General Journal	Debit	Credit
1	January 09	Cash	137,100
		Accounts Receivable	53,700
		Service Revenue		190,800

Income Statement

Income Statement
For the year Ended
Service Revenue	202,900
Operating Expense
Salaries	126,600
Insurance Expense	7,300
Supplies Expense	6,600
Property Tax Expense	8,800
Total Operating Expense	149,300
Net Income	53,600

Retained Earnings
Opening Balance	-
Add : Net Income	53,600
Less : Dividend	(3,100)
Closing Balance	50,500

Balance Sheet
Assets
Cash	81,900
Accounts Receivable	1,900
Supplies	3,200
Total	87,000
Liabilities and Equity
Accounts Payable	(1,900)
Capital	30,000
Retained Earnings	50,500
Total	87,000

Diffrnce due to opening balance missiing

=137100+51800+13200-8800-11700-126600+30000-3100 = cASH