Question

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 services provided during August.
Sept.	15		Completed a job and received $2,600 cash for services rendered.
Oct.	1		Paid employee salaries of $31,000 cash.
	15		Received $8,700 cash from accounts receivable.
Nov.	16		Billed customers $31,500 for services rendered on account.
Dec.	1		Paid a dividend of $1,100 cash to the stockholders.
	31		Adjusted records to recognize the services provided on the contract of July 1.
	31		Recorded $2,500 of accrued salaries as of December 31.
	31		Recorded the rent expense for the year. (See February 1.)
	31		Physically counted supplies; $80 was on hand at the end of the period.

b. Post the transactions to T-accounts and calculate the account balances. (Round your answers to the nearest whole dollar amount.)

Cash Accounts Receivable Beg. Bal.          Beg. Bal.          End. Bal. End. Bal. Prepaid Rent Supplies Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Payable Unearned Revenue Beg. Bal. Beg. Bal. End. Bal. Salaries Payable Common Stock Beg. Bal. Beg. Bal. End. Bal. End. Bal. Dividends Service Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Rent Expense Salaries Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Supplies Expense Beg. Bal. End. Bal.

Answer 1

Cash					Accounts Receivable
Beg Bal	$                   -				Beg Bal
Jan-30	$          48,000	$        17,400	Feb-01		Aug-15	$                   9,300	$          8,700	Oct-15
Jul-01	$          28,000	$              660	Jul-20		Nov-16	$                 31,500
Sep-15	$            2,600	$        31,000	Oct-01
Oct-15	$            8,700	$           1,100	Dec-01
Ending Balance	$          37,140				Ending Balance	$                 32,100
Supplies					Prepaid Rent
Beg Bal	$                   -				Beg Bal	$                          -
Apr-10	$                880	$              800	Dec-31		Feb-01	$                 17,400	$          7,975	Dec-31
Ending Balance	$                  80				Ending Balance	$                   9,425
Unearned Revenue					Salaries Payable
Beg Bal		$                 -			Beg Bal
Dec-31	$          14,000	$        28,000	Jul-01				$          2,500	Dec-31
Ending Balance		$        14,000			Ending Balance		$          2,500
Accounts Payable					Common Stock
Beg Bal		$                 -			Beg Bal		$                 -
Jul-20	$                660	$              880	Apr-10				$        48,000	Jan-30
Ending Balance		$              220			Ending Balance		$        48,000
Dividend					Service Revenue
Beg Bal					Beg Bal
Dec-01	$            1,100						$          9,300	Aug-15
							$          2,600	Sep-15
							$        31,500	Nov-16
							$        14,000	Dec-31
Ending Balance	$            1,100				Ending Balance		$        57,400
Rent Expense					Supplies Expense
Beg Bal					Beg Bal
Dec-31	$            7,975				Dec-31	$                       800
Ending Balance	$            7,975				Ending Balance	$                       800
Salaries Expense
Beg Bal
Oct-01	$          31,000
Dec-31	$            2,500
Ending Balance	$          33,500