Homework Answers
Solution:
| Dynamite Fireworks | |||
| General Journal | |||
| Date | Account titles | Debit (in $) | Credit (in $) |
| January 2021 | |||
| 2 | Prepaid rent | 6,000 | |
| Cash | 6,000 | ||
| (To record rent paid in advance) | |||
| 9 | Supplies | 3,500 | |
| Accounts payable | 3,500 | ||
| (To record purchase of supplies on account) | |||
| 13 | Accounts receivables | 25,500 | |
| Service revenue | 25,500 | ||
| (To record services provided on account) | |||
| 17 | Cash | 3,700 | |
| Unearned Service revenue | 3,700 | ||
| (To record revenue received for services to be provided in future) | |||
| 20 | Salaries expense | 11,500 | |
| Cash | 11,500 | ||
| (To record salaries paid in cash) | |||
| 22 | Cash | 24,100 | |
| Accounts receivables | 24,100 | ||
| (To record cash collected from receivables) | |||
| 29 | Accounts payable | 4,000 | |
| Cash | 4,000 | ||
| (To record cash paid to accounts payables) | |||
| 31 | Rent expense | 500 | |
| Prepaid rent | 500 | ||
| (To record rent expense for the month of January 2021) | |||
| 31 | Supplies expense | 3,800 | |
| Supplies | 3,800 | ||
| (To record usage of supplies) ($3,100+$3,500-$2800) | |||
| 31 | Unearned Service revenue | 3,200 | |
| Service revenue | 3,200 | ||
| (To record services provided against cash received in advance) | |||
| 31 | Salaries expense | 5,800 | |
| Salaries payable | 5,800 | ||
| (To record accrued slalary at the end of the month) | |||
Posting to T-Accounts (General Ledger):
| Dynamite Fireworks | ||
| Trial Balance | ||
| 31st January, 2021 | ||
| Accounts titles | Debit (in $) | Credit (in $) |
| Cash | 30,100 | |
| Accounts receivables | 6,600 | |
| Supplies | 2,800 | |
| Prepaid rent | 5,500 | |
| Land | 50,000 | |
| Accounts payable | 2,700 | |
| Salaries payable | 5,800 | |
| Unearned service revenue | 500 | |
| Common Stock | 65,000 | |
| Retained earnings | 13,900 | |
| Service revenue | 28,700 | |
| Rent expense | 500 | |
| Salaries expense | 17,300 | |
| Supplies expense | 3,800 | |
| Totals | 116,600 | 116,600 |
| Dynamite Fireworks | ||
| Income statement | ||
| for the month ended January 31, 2021 | ||
| figures in $ | figures in $ | |
| Service revenue | 28,700 | |
| Expenses: | ||
| Rent expense | 500 | |
| Salaries expense | 17,300 | |
| Supplies expense | 3,800 | |
| Total expenses | 21,600 | |
| Net Income | 7,100 | |
| Dynamite Fireworks | ||
| Balance Sheet | ||
| As of January 31, 2021 | ||
|
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On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 25,280 6,600 4,500 64,000 ok $ 4,600 79,000 16,700 $100, 300 nt $100,300 ences During January 2021, the following transactions occur January 2 Purchase rental space for one year in advance, $10,200 ($850/month). January 9 Purchase additional supplies on account, $4,900. January 13 Provide services to customers on account,...
Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 24,400 5,800 3,700 56,000 $ 3,800 71,000 15, 100 $ 89,900 $ 89,900 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $7,800 ($650/month). January 9 Purchase additional supplies on account, $4,100. January 13 Provide services to customers on...
Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 24,400 5,800 3,700 56,000 $ 3,800 71,000 15,100 $ 89,900 $ 89,900 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $ 7,800 ($650/month). January 9 Purchase additional supplies on account, $4,100. January 13 Provide services to customers on...
General Journal, Income Statement, Statement of SE, Balance
Sheet
On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 24,900 6,300 4,200 61,000 $ 4,300 76,000 16,100 $ 96,400 $96,400 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $9,300 ($775/month). January 9 Purchase additional supplies on account, $4,600. January 13...
Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $24,900 6,300 4,200 61,000 $ 4,300 76,000 16,100 $96,400 $96,400 During January 2021, the following transactions occur. January 2 Purchase rental space for one year in advance, $9,300 ($775/month). January 9 Purchase additional supplies on account, $4,600. January 13 Provide services to customers on account, $26,600. January 17...
Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 24,400 5,800 3,700 56,000 $ 3,800 71,000 15, 100 $ 89,900 $ 89,900 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $7,800 ($650/month). January 9 Purchase additional supplies on account, $4,100. January 13 Provide services to customers on...
On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Debit Credit Cash $ 24,600 Accounts Receivable $ 6,000 Supplies 3,900 Land 58,000 Accounts Payable $ 4,000 Common Stock 73,000 Retained Earnings 15,500 Totals $92,500 $92,500 nts During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $8,400 ($700/month). January 9. Purchase additional supplies on account, $4,300. January 13 Provide services to customers on account, $26,300. January...
! Required information On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $ 24,400 5,800 3,700 56,000 $ 3,800 71,000 15, 100 $ 89,900 $89,900 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $7,800 ($650/month). January 9 Purchase additional supplies on account, $4,100. January 13 Provide services to customers on...
On January 1, 2021, the general ledger of Dynamite Fireworks
includes the following account balances:
Accounts
Debit
Credit
Cash
$
25,500
Accounts Receivable
6,900
Supplies
4,800
Land
67,000
Accounts Payable
$
4,900
Common Stock
82,000
Retained Earnings
17,300
Totals
$
104,200
$
104,200
During January 2021, the following transactions occur:
January
2
Purchase rental space for one year in advance, $11,100
($925/month).
January
9
Purchase additional supplies on account, $5,200.
January
13
Provide services to customers on account, $27,200.
January...