Question

[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, $65,000 Deferred Revenue, $5,500: Common Stock $55,000; and Retained Earnings, $30,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $25,eee. 2. May 20 Provide services to customers for cash, $40,000, and on account, $35,000. 3. August 31 Pay salaries to employees for work in 2021, $28,eee. 4. October 1 Purchase rental space for one year, $17,000 5. November 17 Purchase supplies on account, $27,eee. 6. December 30 Pay dividends, $2,5ee. The following information is available on December 31, 2026 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

Answer 1

Credit Debit $25,000 $25,000 $40,000 $35,000 $75,000 $28,000 $28,000 Date General Journal February 15 Cash Common stock (To record issue of common stock) May 20 Cash Accounts Receivable Service revenue (To record service revenue) August 31 Salaries expense Cash (To record salaries paid) October 1 Prepaid rent Cash (To record prepaid rent) November 17 Supplies Accounts payable (To record purchase of supplies on account) December 30 Dividend Cash (To record payment of dividend) $17,000 $17,000 $27,000 $22,000 $2,500 $2,500 Credit Debit $4,500 $4,500 $4,250 $17,000/12*3 $4,250 Date General Journal December 31 Salaries expense Salaries payable (To record salaries accrued) December 31 Rent expense Prepaid rent ( To record prepaid rent expired) December 31 Supplies expense Supplies (To record supplies expense) December 31 Deferred Revenue Service revenue To record deferred revenue as service revenue) $21,500 $27,000-$5,500 $21,500 $5,500 $5,500