Question

Required information [The following information applies to the questions displayed below.) On January 1, 2021, Red Flash Photography had the following balances: Cash, $17.000; Supplies, $8,500; Land, $ Deferred Revenue, $5,500; Common Stock $55,000; and Retained Earnings, $30,000. During 2021, the company following transactions: 1. February 15 Issue additional shares of common stock, $25,000 2. May 20 Provide services to customers for cash, $40,000, and on account, $35, eee. 3. August 31 Paysalaries to enployees for work in 2021, $28,000. 4. October 1 Purchase rental space for one year, $17,000. 5. November 17 Purchase supplies on account, $27,000. 6. December 30 Pay dividends, $2,500. The following information is available on December 31, 2021 1. Employees are owed an additional $4,500 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $5,500 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed inces 3. Prepare an adjusted trial balance. RED FLASH PHOTOGRAPHY Adjusted Trial Balance December 31, 2021 Account Det Credit

Answer 1

Adjusted trial balance

	Debit	Credit
Cash	7500
Account receivable	35000
Supplies	5500
Prepaid rent (17000*9/12)	12750
Land	65000
Salaries payable		4500
Common Stock		80000
Retained earnings		30000
Dividend	2500
Service revenue		80500
Supplies expense	30000
Rent expense	4250
Salaries expense	32500
	195000	195000