Homework Answers
Sales revenue recognized = Gross profit + COGS
= 20000 + 50000
= 70000
When the company received cash, it would have been recognized as a deferred revenue
Ending balance of deferred revenue = Beginning balance of deferred revenue + Cash received - sales recognized
10000 = Beginning balance + 55000 - 70000
Beginning balance = 80000
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A) Record the adjusting
entries at the end of the year for:
1. Salaries
2. Rent
3. Supplies
4. Deferred revenue
B) Prepare an adjusted trial balance
C) Prepare an income statement, statement of stockholder's
equity, and classified balance sheet
D) Prepare closing entries for
1. Revenue accounts
2. Expense accounts
3. Dividend accounts
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Red Flash Photography had the following balances: Cash, $16,000; Supplies, $8,400,...
A) Record the adjusting entries at the end of the year
for:
1. Salaries
2. Rent
3. Supplies
4. Deferred revenue
B) Prepare an adjusted trial balance
C) Prepare an income statement, statement of stockholder's
equity, and classified balance sheet
D) Prepare closing entries for
1. Revenue accounts
2. Expense accounts
3. Dividend accounts
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