Question

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 $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
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