Question

The general ledger of Zips Storage at January 1, 2021, includes the following account balances: Credits Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings Totals Debits $ 25,400 16,200 13,600 156,000 $ 7,500 6,600 151,000 46, 100 $211,200 $211,200 The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, $142,100, and on account, $56,200. 2. February 12 Collect on accounts receivable, $52,300. 3. April 25 Receive cash in advance from customers, $13,700. 1. May 6 Purchase supplies on account, $10,800. 3. July 15 Pay property taxes, $9,300. 5. September 10 Pay on accounts payable, $12,200. 7. October 31 Pay salaries, $131,600. 3. November 20 Issue shares of common stock in exchange for $35,000 cash. 7. December 30 Pay $3,600 cash dividends to stockholders. nsurance expired during the year is $7,800. Supplies remaining on hand at the end of the year equal $3,700. Provide services of $12,600 related to cash paid in advance by customers.

Answer 1

Credit Debit $ 210,900 Date General Journal December 31 Service Revenue Retained Earnings (To Close revenue accounts) $ 210,900 $ 155,800 December.31 Retained Earnings Salaries Expense Insurance Expense Supplies Expense Property tax Expense (To close expense accounts) $ 131,600 $ 7,800 $ 7,100 $ 9,300 $ 3,600 December.31 Retained Earnings Dividends (To close dividend account) $ 3,600 Working Notes: Service Revenue = $142,100+$56,200+$12,600 = $210,900 Supplies Expense = $10,800-$3,700 = $7,100