Question

Required information [The following information applies to the questions displayed below.) On January 1, 2018, Red Flash Photography had the following balances: Cash, $22,000; Supplies, $9,000; Land, $70,000; Deferred Revenue, $6,000; Common Stock $60,000; Retained Earnings, $35,000. During 2018, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $30,000. 2. May 20 Provide services to customers for cash. $45,000, and on account, $40,000 3. August 31 Pay salaries to employees for work in 2018, $33,000. 4. October 1 Purchase rental space for one year, $22,000. 5. November 17 Purchase supplies on account, $32,000. 6. December 30 Pay dividends, $3,000. The following information is available on December 31, 2018: 1. Employees are owed an additional $5,000 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $6,000 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed

Answer 1

Requirement (3) Red Flash photography Adjusted Trial Balance December 31, 2018 Accounts Debit Credit Cash $ 39,000 Supplies $ 6,000 Accounts Receivable $ 40,000 Prepaid Rent $ 16,500 Land $ 70,000 Accounts Payable $ 32,000 Salaries Payable $ 5,000 Deferred Revenue Common Stock $ 90,000 Retained Earnings $ 35,000 Dividends $ 3,000 Service Revenue $ 91,000 Salaries Expense $ 38,000 Rent Expense $ 5,500 Supplies Expense $ 35,000 Totals $ 253,000 $253,000 Note : Do Comment for any further assistnace