Comprehensive problem: single cycle
The following transactions pertain to Sky Training Company for 2011.
Jan.30 | Established the business when it acquired $75,000 cash from the issue of common stock. |
Feb.1 | Paid rent for office space for two years, $24,000 cash. |
Apr. 10 | Purchased $5,300 of supplies on account. |
July 1 | Received $50,000 cash in advance for services to be provided over the next year. |
20 | Paid $1,800 of the accounts payable from April 10. |
Aug. 15 | Billed a customer $32,000 for services provided during August. |
Sept. 15 | Completed a job and received $19,000 cash for services rendered. |
Oct. 1 | Paid employee salaries of $20,000 cash. |
15 | Received $25,000 cash from accounts receivable. |
Nov. 16 | Billed customers $37,000 for services rendered on account. |
Dec. 1 | Paid a dividend of $6,000 cash to the stockholders. |
31 | Adjusted records to recognize the services provided on the contract of July 1. |
31 | Recorded $4,500 of accrued salaries as of December 31. |
31 | Recorded the rent expense for the year. (See February 1.) |
31 | Physically counted supplies; $480 was on hand at the end of the period. |
Required
a. Record the preceding transactions in the general journal.
b. Post the transactions to T-accounts and calculate the account balances.
c. Prepare a trial balance.
d. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows.
e. Prepare the closing entries at December 31.
f. Prepare a trial balance after the closing entries are posted.
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