The following transactions pertain to Smith Training Company for Year 1:
Jan. | 30 | Established the business when it acquired $54,000 cash from the issue of common stock. | |
Feb. | 1 | Paid rent for office space for two years, $15,600 cash. | |
Apr. | 10 | Purchased $790 of supplies on account. | |
July | 1 | Received $30,000 cash in advance for services to be provided over the next year. | |
20 | Paid $593 of the accounts payable from April 10. | ||
Aug. | 15 | Billed a customer $10,200 for services provided during August. | |
Sept. | 15 | Completed a job and received $3,300 cash for services rendered. | |
Oct. | 1 | Paid employee salaries of $36,500 cash. | |
15 | Received $9,500 cash from accounts receivable. | ||
Nov. | 16 | Billed customers $38,500 for services rendered on account. | |
Dec. | 1 | Paid a dividend of $600 cash to the stockholders. | |
31 | Adjusted records to recognize the services provided on the contract of July 1. | ||
31 | Recorded $2,200 of accrued salaries as of December 31. | ||
31 | Recorded the rent expense for the year. (See February 1.) | ||
31 | Physically counted supplies; $110 was on hand at the end of the period. |
c. Prepare a trial balance.
e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts.
f. Prepare a post-closing trial balance for Year 1.
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Part c and f | ||||
Adjusted Trial | Post Closing | |||
Account | Debit | Credit | Debit | Credit |
Cash | $ 43,507 | $ 43,507 | ||
Accounts Receivable | $ 39,200 | $ 39,200 | ||
Prepaid rent | $ 8,450 | $ 8,450 | ||
Supplies | $ 110 | $ 110 | ||
Accounts Payable | $ 197 | $ 197 | ||
Salaries Payable | $ 2,200 | $ 2,200 | ||
Common Stock | $ 54,000 | $ 54,000 | ||
Dividend | $ 600 | |||
Retained Earning | $ 34,870 | |||
Service Revenue | $ 82,000 | |||
Rent Expense | $ 7,150 | |||
Salaries Expense | $ 38,700 | |||
Supplies Expense | $ 680 | |||
Total | $ 138,397 | $ 138,397 | $ 91,267 | $ 91,267 |
Part e Closing Entries: | |||
Date | Account | Debit | Credit |
c1 | Service Revenue | $ 82,000 | |
Income Summary | $ 82,000 | ||
(To close service revenue) | |||
c2 | Income Summary | $ 46,530 | |
Rent Expense | $ 7,150 | ||
Salaries Expense | $ 38,700 | ||
Supplies Expense | $ 680 | ||
(To close expense account) | |||
c3 | Income Summary | $ 35,470 | |
Retained earning | $ 35,470 | ||
(To close income summary account) | |||
c4 | Retained earning | $ 600 | |
Dividend | $ 600 | ||
(To close dividend account) |
Service Revenue | |||
Debit | Credit | ||
c1 | $ 82,000 | Aug 15 | $ 10,200 |
Sep 15 | $ 3,300 | ||
Nov 16 | $ 38,500 | ||
Dec 31 | $ 30,000 | ||
Ending Balance | $ - | ||
Rent Expense | |||
Debit | Credit | ||
Dec 31 | $ 7,150 | c2 | $ 7,150 |
Ending Balance | $ - | ||
Salaries expense | |||
Debit | Credit | ||
Oct 1 | $ 36,500 | c2 | $ 38,700 |
Dec 31 | $ 2,200 | ||
Ending Balance | $ - | ||
Supplies expense | |||
Debit | Credit | ||
Dec 31 | $ 680 | c2 | $ 680 |
Ending Balance | $ - | ||
Retained Earning | |||
Debit | Credit | ||
c2 | $ 46,530 | c1 | $ 82,000 |
c4 | $ 600 | ||
Ending Balance | $ 34,870 |
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established ...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $52,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $16,400 cash. Apr. 10 Purchased $790 of supplies on account. July 1 Received $29,500 cash in advance for services to be provided over the next year 20 Paid $593 of the accounts payable from April 10. Aug. 15 Billed a customer $10,200 for...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $48,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $17,400 cash. Apr. 10 Purchased $880 of supplies on account. July 1 Received $28,000 cash in advance for services to be provided over the next year. 20 Paid $660 of the accounts payable from April 10. Aug. 15 Billed a customer $9,300 for...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $48,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $17,400 cash. Apr. 10 Purchased $880 of supplies on account. July 1 Received $28,000 cash in advance for services to be provided over the next year. 20 Paid $660 of the accounts payable from April 10. Aug. 15 Billed a customer $9,300 for...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $48,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $17,400 cash. Apr. 10 Purchased $880 of supplies on account. July 1 Received $28,000 cash in advance for services to be provided over the next year. 20 Paid $660 of the accounts payable from April 10. Aug. 15 Billed a customer $9,300 for...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $48,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $17,400 cash. Apr. 10 Purchased $880 of supplies on account. July 1 Received $28,000 cash in advance for services to be provided over the next year. 20 Paid $660 of the accounts payable from April 10. Aug. 15 Billed a customer $9,300 for...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $48,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $17,400 cash. Apr. 10 Purchased $880 of supplies on account. July 1 Received $28,000 cash in advance for services to be provided over the next year. 20 Paid $660 of the accounts payable from April 10. Aug. 15 Billed a customer $9,300 for...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $48,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $17,400 cash. Apr. 10 Purchased $880 of supplies on account. July 1 Received $28,000 cash in advance for services to be provided over the next year. 20 Paid $660 of the accounts payable from April 10. Aug. 15 Billed a customer $9,300 for...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $46,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $16,100 cash. Apr. 10 Purchased $890 of supplies on account. July 1 Received $27,000 cash in advance for services to be provided over the next year. 20 Paid $668 of the accounts payable from April 10. Aug. 15 Billed a customer $9,300 for...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $48,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $17,400 cash. Apr. 10 Purchased $880 of supplies on account. July 1 Received $28,000 cash in advance for services to be provided over the next year. 20 Paid $660 of the accounts payable from April 10. Aug. 15 Billed a customer $9,300 for...
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $48,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $17,400 cash. Apr. 10 Purchased $880 of supplies on account. July 1 Received $28,000 cash in advance for services to be provided over the next year. 20 Paid $660 of the accounts payable from April 10. Aug. 15 Billed a customer $9,300 for...