Business, 08.03.2021 19:30 bobiscool3698

On January 1, 2021, Red Flash Photography had the following balances: Cash, $25,000; Supplies, $9,300; Land, $73,000; Deferred Revenue, $6,300; Common Stock $63,000; and Retained Earnings, $38,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $33,000.
2. May 20 Provide services to customers for cash, $48,000, and on account, $43,000.
3. August 31 Pay salaries to employees for work in 2021, $36,000.
4. October 1 Purchase rental space for one year, $25,000.
5. November 17 Purchase supplies on account, $35,000.
6. December 30 Pay dividends, $3,300.

The following information is available on December 31, 2021:

a. Employees are owed an additional $5,300 in salaries.
b. Three months of the rental space has expired.
c. Supplies of $6,300 remain on hand.
d. All of the services associated with the beginning deferred revenue have been performed.

Required:
a. Record each of the transactions listed above.
b. Record the adjusting entries.
c. Prepare an income statement for the year ended December 31, 2022, in the 'Income Statement'
d. Prepare the statement of Stockholder's Equity For the year ended December 21, 2021.

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Answer from: bnvghnbbb

Red Flash Photography

a. Journal Entries:

1. Feb. 15:

Debit Cash $33,000

Credit Common Stock $33,000

2. May 20:

Debit Cash $48,000

Debit Accounts Receivable $43,000

Credit Service Revenue $91,000

3. Aug. 31:

Debit Salaries Expense $36,000

Credit Cash $36,000

4. Oct. 1:

Debit Prepaid Rent $25,000

Credit Cash $25,000

5. Nov. 17:

Debit Supplies $35,000

Credit Account Payable $35,000

6. Dec. 30:

Debit Dividends $3,300

Credit Cash $3,300

b. Adjusting Journal Entries:

a. Debit Salaries Expense $5,300

Credit Salaries Payable $5,300

b. Debit Rent Expense $6,250

Credit Prepaid Rent $6,250

c. Debit Supplies Expense $38,000

Credit Supplies $38,000

d. Debit Deferred Revenue $6,300

Credit Service Revenue $6,300

c. Income Statement for the year ended December 31, 2022:

Service Revenue $97,300

Salaries Expense 41,300

Rent Expense 6,250

Supplies Expense 38,000

Dividends 3,300 $88,850

Net Income $8,450

d. Statement of Stockholders' Equity

For the year ended December 31, 2022:

Common Stock $96,000

Beginning retained earnings 38,000

Net Income 8,450

Dividends (3,300)

Ending Equity $139,150

Explanation:

a) Data and Calculations:

Trial balance

Account Titles Debit Credit

Cash $25,000

Supplies $9,300

Land $73,000

Deferred Revenue $6,300

Common Stock $63,000

Retained Earnings $38,000

Totals $107,300 $107,300

Analysis of Transactions:

1. Feb. 15: Cash $33,000 Common Stock $33,000

2. May 20: Cash $48,000 Accounts Receivable $43,000 Service Revenue $91,000

3. Aus. 31: Salaries Expense $36,000 Cash $36,000

4. Oct. 1: Prepaid Rent $25,000 Cash $25,000

5. Nov. 17: Supplies $35,000 Account Payable $35,000

6. Dec. 30: Dividends $3,300 Cash $3,300

Adjustments:

a. Salaries Expense $5,300 Salaries Payable $5,300

b. Rent Expense $6,250 Prepaid Rent $6,250

c. Supplies Expense $38,000 Supplies $38,000 ($9,300+35,000-6,300)

d. Deferred Revenue $6,300 Service Revenue $6,300

T-accounts:

Cash

Account Titles Debit Credit

Beginning balance $25,000

Common stock 33,000

Service Revenue 48,000

Salaries $36,000

Prepaid Rent 25,000

Dividends 3,300

Ending balance 41,700

Prepaid Rent

Account Titles Debit Credit

Cash $25,000

Rent Expense $6,250

Ending balance 18,750

Accounts Receivable

Account Titles Debit Credit

Service Revenue $43,000

Supplies

Account Titles Debit Credit

Beginning balance $9,300

Accounts payable 35,000

Supplies Expense $38,000

Ending balance $6,300

Land

Account Titles Debit Credit

Beginning balance $73,000

Deferred Revenue

Account Titles Debit Credit

Beginning balance $6,300

Service Revenue $6,300

Accounts Payable

Account Titles Debit Credit

Supplies $35,000

Salaries Payable

Account Titles Debit Credit

Salaries expense $5,300

Common Stock

Account Titles Debit Credit

Beginning balance $63,000

Cash 33,000

Ending balance $96,000

Retained Earnings

Account Titles Debit Credit

Beginning balance $38,000

Service Revenue

Account Titles Debit Credit

Cash $48,000

Accounts Receivable 43,000

Deferred Revenue 6,300

Income Summary $97,300

Salaries Expense

Account Titles Debit Credit

Cash $36,000

Salaries Payable 5,300

Income Summary $41,300

Rent Expense

Account Titles Debit Credit

Prepaid Rent $6,250

Income Summary $6,250

Supplies Expense

Account Titles Debit Credit

Supplies $38,000

Income Summary $38,000

Dividends

Account Titles Debit Credit

Cash $3,300

Retained earnings $3,300

Adjusted Trial Balance

Account Titles Debit Credit

Cash $41,700

Prepaid Rent 18,750

Accounts receivable 43,000

Supplies 6,300

Land 73,000

Accounts payable $35,000

Salaries payable 5,300

Common Stock 96,000

Retained earnings 38,000

Service Revenue 97,300

Salaries Expense 41,300

Rent Expense 6,250

Supplies Expense 38,000

Dividends 3,300

Totals $271,600 $271,600

Answer from: Quest

88 because 4 plus 4 equals 8. 40 plus 40 equals 80. 80 plus 8 equals 88

Answer from: Quest

those r all of them i believe

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On January 1, 2021, Red Flash Photography had the following balances: Cash, $25,000; Supplies, $9,30...

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