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.

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. Round your final answers to the nearest whole dollar amount.)

1. Record the closure of service revenue.

2. Record the closure of expenses account.

3. Record the payment of Dividends.

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. End. Bal. Salaries Payable Common Stock Beg. Bal. Beg. Bal. End. Bal. End. Bal. Retained Earnings Dividends Beg. Bal. Beg. Bal. Cl Cl Cl Cl End. Bal. End. Bal. Service Revenue Salaries Expense Beg. Bal. Beg. Bal. Cl Cl End. Bal. End. Bal. Rent Expense Supplies Expense Beg. Bal. Beg. Bal. Cl Cl End. Bal. End. Bal.

Answer 1

1. Journal entrin for the given transactions: Debit / Credil $48.000 $48,000 $19,400 +T7, CO $880 $880 $28,000 $25,000 $28,000 pale Name of the Account Jan 30 cash nl Dr. To common stock (lo record the common stock issued) Febl Prepaid Rent Nk wi To cash nk (to record the rent paid toi two years) Aprillo suplis nl Dr To Accounts payable nk. (to record the purchase of supplen) couh N OV Jully I hed Tounearned Revenue Revenec Ak cr teateik (to record the advance recei- eved for services) Julygo Accounts payable Al DI To cash xk (to record the cash paid) Accocents Recewable Al Di To service Revenue (to record the services rendered on account) cash Al wr To service Revenue al Cto record the cash received for service rendered). $660 $660 $9.00 $9,300 1$2,600 Sep is $2,600

Date . credit Debit $31,000 oct 1 Name of the Account salarius experiesal TO cash Al . (to record the salaud $31,000 paid) $ 8,700 oct 15 $8,700 cash xl wr To Accounts Receivable (to record cash received from accounts receivable Accounes Recewable Atc ar To service Revenue. (to record the services rendered on account) Nov 16 $ 31,500 $1,100 pec I $ 1.100 Dividends Ak Die To call al (to record the dividends paid) Dec 31 $14,000 , Dec 31 Ser Un Earned Revenue $ 14,000 AK To servia Revenue C $28.000x (2) (to record service revenue for the year) salaris Expence nk pri $2,500 Jo Salariu Payable Rent Experie Al pr $8,700 To prepaid Rene supplics Expenie nk $300 To supplies Ak $2,500 pec31 $8,700 Dec 31 $300

closing Entry 1. 2. service Revenue Alc or $57,400 To Retained Earnings Al $57,400! (to close the service Revenue Alc) Relained Earnings Al $43,000 To suplus Expense All $800 TO Rene Expenue Ale $8700 To salaries Expens al $33,500 (to close the expense Accts) $1,100 3. $1,100 Dividends declared Al To cash ak (to record the dividends paid) Retained earning a TO Dividends declared (For transfer of Retained Earnings to Dividends declared Alc) $1,100 $1100

Cash xk Jan no common $48,000 febley Prepaid Pont The EU Accord powable $17, 400 660 Hock $ 88,000 Levenu rely Sep to unearned To seiviu Reval $2,600| $8.700 g By Solaiye Expinie $31,000 31. to Necount feceí total pec 84 bal old. $37, 140 782300 Total 187,300 Accounts Receivable Ak $8,700 Helg 70 selvio Revenu $9,300 is by cash nk love to sevenue 4 31,500 pec By balance eld $32,100 LU Total Total $40,800 $40,800 Prepaid Rent Al Feb to cash xk $17,400 Bee By Rent $8,700 Experte Per B4 balance eld $8,700 Total $19, Hool Total $17, 400

Sunneinak. Dec By supplies $800 | April to calh Ak $880 Expenie xic 10 Total 8880 Account see 84 balance eld $80 Total $880 Payable al AP By supplunak, $880 Jully To cash Al $660 7 8820 to balance pec 31 3880 Total $880 | Total Unearned Revenue Ale on July By cashak $28,000 Dec to service Revenue Dec to balance Total $14.000 $ 14,000 $28,000 Voo To balance cld 31 Total $28,000 Salaries payable Ak Dec By salaries $2,500 Expenie pec Bo Balance of $2500 31 31 Total $2.500 62500 Total

salaries Expenie $31,000 pec By Retained out to cash ni Earnings $33,500 per 10 salaris Payable to fal Total $33,500 $33,900 Rene Expense $8,700 Dec By Retained pec To Prepaid 8700 31 Rent Earnings $8,700 Total I $8,700 gotal 43,700 til 18, 200 Total $8,700 Supplus Expense Dec To supplies $800 wec By 31 supples Expense $800 & 31 Alc tota $800 Toral $800

closing balances $37, 140 Cash $32,100 $ 8,700 Accounts Receivable Prepaid Rent sunen Total Assels $78,020 Accounts Payable salaries Payable Unearned encome common stock Retained Earnings & 220 $ 2500 $ 11,000 $ 48,000 & 13,300 $ 98,020 Total and Reabilities Earrecte