Question

Required information [The following information applies to the questions displayed below.] The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $45,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $24,000 cash. Apr. 10 Purchased $3,200 of supplies on account. July 1 Received $24,000 cash in advance for services to be provided over the next year. 20 Paid $1,500 of the accounts payable from April 10. Aug. 15 Billed a customer $18,000 for services provided during August. Sept. 15 Completed a job and received $8,400 cash for services rendered. Oct. 1 Paid employee salaries of $12,000 cash. 15 Received $15,000 cash from accounts receivable. Nov. 16 Billed customers $42,000 for services rendered on account. Dec. 1 Paid a dividend of $15,000 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $3,600 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $280 was on hand at the end of the period. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Closing entries 31-Dec Service Revenue Retained Earnings $ 80,400 $ 80,400 $ 29,520 31-Dec Retained Earnings Salaries expense Rent expense Supplies expense $ $ $ 15,600 11,000 2,920 $ 15,000 31-Dec Retained Earnings Dividends $ 15,000

Credit Date Date Date Date Credit Date T Accounts Date Debit Cash Beg Bal. $ 39,900 Date Debit Credit Accounts Receivable Beg Bal. $ 45,000 Date Debit Credit Prepaid Rent Beg Bal. $13,000 Debit Supplies $ 280 Beg Bal. End Bal. $ 39,900 Accounts Payable Beg Bal. $ 1,700 End Bal. $ 45,000 Unearned Revenue Beg Bal. $ 12,000 End Bal. $13,000 Salaries Payable Beg Bal. $ 3,600 End Bal. $ 280 Common Stock Beg Bal. $ 45,000 End Bal. $ 12,000 End Bal. $ 3,600 End Bal. $ 45,000 End Bal. $ 1,700 Retained Earnings Beg Bal. $ 29,520 $ 80,400 CI $ 15,000 Dividends $ 15,000 Beg Bal. CI $ 15,000 CI End Bal. $ 35,880 Service Revenue Beg Bal. $ 80,400 $ 80,400 End Bal. $ - Salaries expense Beg Bal. $ 15,600 $ 15,600 CI Rent expense Beg Bal. $ 11,000 $ 11,000 CI Supplies expense Beg Bal. $ 2,920 $ 2,920 CI CI End Bal. End Bal. $ - End Bal. $ End Bal. $ -