Question

On January 1, 2021, Red Flash Photography had the following balances: Cash, $27,000; Supplies, $9,500; Land, $75,000; Deferred Revenue, $6,500; Common Stock $65,000; and Retained Earnings, $40,000. During 2021, the company had the following transactions:

1.		February		15		Issue additional shares of common stock, $35,000.
2.		May		20		Provide services to customers for cash, $50,000, and on account, $45,000.
3.		August		31		Pay salaries to employees for work in 2021, $38,000.
4.		October		1		Purchase rental space for one year, $27,000.
5.		November		17		Purchase supplies on account, $37,000.
6.		December		30		Pay dividends, $3,500.

The following information is available on December 31, 2021:

1. Employees are owed an additional $5,500 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,500 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

Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

.....

• Record the entry to close the expense accounts.

Note: Enter debits before credits.

	Date Account Title Debit Credit Dec 31

Answer 1