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. 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

In the books of Smith Training Company Answey> Tournal Entries Debit Credit General Journal Date year! $45000 Common Stock alc Jan 30. $45000 Cash alc (To recard Commencement of the Business) $24000 Febl. prepaid Rent alc Cash alc $24000 (To record Rent paid for twO Years) April lo. Supplies Expenses alc $3200 $3200 Account payable alc (To record purchases of Supfies account) $24000 Cash aic Tuly I. $24000 prepaid Income aic (To record Cashin advance received for semicu to be frovided) $1500 ACC ount payable alc July20 $1500 cash aic (TO record payment made to the account pay a ble)

$18000 Accaunt receivable aic Ang 15. $18000 Service Revenue alc (Torecord Service revenue provided during mgust) $8400 Cash aic 'S1 구425 Service Revenue alc (To recoyd Cash received for Services rendered) $8400 $12000 salaries Expense alc octl. $12.000 Cash alc (To record Salaries paid) $15000 Cash alc oct 15. $15000 Accounts receivable alc (To record Cash received from accounts receivable) $ 42000 ACCounts Teceivable alc Nov 16. Service Revenue alc $42000 (To record Sevice revenue provided on account) Decl. Dividend $15000 alc Cash alc $15000 (TO record dividend

$12000 Dec 31. Prepaid Income aic $12000 Service revenue alc (To record Service retognised) $3600 Salayies alc Dec31. $3600 Accrued Salaries aic (To record accrued Salarfes) $11000 Dec31. Rent alc $l1000 prebaid rent alc (To record Rent £xpense Tecognised dusing year)