Question

On January 1, 2021, Red Flash Photography had the following balances: Cash, $13,000; Supplies, $8,100; Land, $61,000; Deferred Revenue, $5,100; Common Stock $51,000; and Retained Earnings, $26,000. During 2021, the company had the following transactions:

1.		February		15		Issue additional shares of common stock, $21,000.
2.		May		20		Provide services to customers for cash, $36,000, and on account, $31,000.
3.		August		31		Pay salaries to employees for work in 2021, $24,000.
4.		October		1		Purchase rental space for one year, $13,000.
5.		November		17		Purchase supplies on account, $23,000.
6.		December		30		Pay dividends, $2,100.

The following information is available on December 31, 2021:

1. Employees are owed an additional $4,100 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,100 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Dates: Jan 01 to: Dec 30 RED FLASH PHOTOGRAPHY Balance Sheet As of January 31, 2021 Assets Liabilities Current Assets Current Liabilities $ $ 0 0 0 0 0 0 0 0 0 Total Current Liabilities 0 0 0 0 0 0 Total Liabilites 0 Total Current Assets Long-term Assets Stockholder's Equity 0 0 0 0 0 Total Stockholders' Equity Total Liabilities & Stockholders' Equity Total Assets $ 0 $ 0 < Statement of SE Balance Sheet

Answer 1

General journal Date Account Debit Credit 21000 1 Feb. 15 21000 36000 2 May. 20 31000 67000 24000 3 Aug. 21 Cash Common Stock Cash Account Receivable Service Revenue earned Salaries expense Cash Prepaid rent Cash Supplies Account Payable Dividend Cash 24000 13000 4 Oct. 1 13000 23000 5 Nov. 17 23000 2100 6 Dec. 30 2100

Debit Credit 4100 4100 3250 Adjusting Entries Date Account Salary expense Dec. 31 Salary Payable Rent expense Dec. 31 Prepaid Rent Supplies Expense Dec. 31 Supplies Deferred revenue Dec. 31 Service Revenue earned 3250 26000 26000 26000 26000

Details Beg. Bal Common Stock Service revenue Account Receivable Cash Amount Amount Details 13000 21000 24000 Salary expense 36000 13000 Prepaid rent End Bal. Details 33000 Supplies Amount Amount Details 81001 23000 26000 Supplies expense Beg. Bal Account Payable End Bal. 5100 Land Amount Amount 61000 Details Details Beg. Bal End Bal. 61000

Details Deferred Revenue Amount Amount Details 5100 5100 Service revenue Beg. Bal End Bal. Details 0 Common Stock Amount Amount 51000 21000 Details Beg. Bal Cash End Bal. 72000 Retained Earnings Amount Amount 26000 Details Details Beg. Bal Supplies End Bal. 26000

Details Details Account Receivable Amount Amount 0 31000 Beg. Bal Service Revenue earned End Bal. 31000 Service Revenue earned Amount Amount Details Details Beg. Bal Cash Account Receivable Deferred Revenue End Bal. 36000 31000 5100 72100 Salary expense Amount Amount 0 24000 4100 28100 Details Details Beg. Bal Cash Salary Payable End Bal.

Details Beg. Bal Prepaid Rent Amount Amount Details 0 13000 3250 Rent Expense End Bal. 9750 Account Payable Amount Amount Details Details Beg. Bal Supplies 23000 End Bal. Details 23000 Salary Payable Amount Amount 0 4100 Details Beg. Bal Salary expense End Bal. 4100

Rent Expense Amount Amount 0 3250 Details Beg. Bal Prepaid rent Details End Bal. 3250 Supply expense Amount Amount 0 26000 Details Beg. Bal Supplies Details End Bal. 26000

Details Details Beg. Bal Cash Dividend Amount Amount 0 2100 End Bal. 2100

30900 5100 61000 0 72000 26000 31000 Trial Balance as on 31 Decmber 2021 Cash Supplies Land Deferred Revenue Common Stock Retained earnings Account Receivable Service revenue Salary expense Prepaid rent Account Payable Salary Payable Rent Expense Supply expense Dividend 72100 28100 9750 23000 4100 3250 26000 2100 Total 197200 197200

$ 721001 Income Statemet for the year ending 31 December 2021 Income: $ Service revenue Less Operating expenses Salary expense 28100 Rent Expense 3250 Supply expense 26000 Less Total operating Expenses Net Income -57350 14750

26000 Statement of Retained Earnings Retained Earnings beginning Add Net income Less Dividend Retained Earnings end 14750 -2100 38650

$ Assets Current Assets Cash Account Receivable Supplies Prepaid rent Total Current Assets Long term Assets land 23000 4100 27100 Balance sheet as at 31 December 2021 $ Liabilities Current Liabilities 30900 Account Payable 31000 Salary payable 5100 Total Current Liabilities 9750 76750 Total Liabilities Stockholder Equity 61000 Common Stock Retained Earnings Total Stockholder Equity 137750 Total Liabilities and Stockholder Equity 27100 72000 38650 110650 137750 Total Assets