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. a job and received $8,400 cash for services rendered. Oct. 1 Paid employee salaries of $12,000 cash. 15 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. 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.) View transaction list

Answer 1

Smith Training Co Journal entries Date Account 30-Jan Cash Common Stock Credit Calculation Debit $ 45,000 $ 45,000 $ 24,000 1-Feb Prepaid Rent Cash $ 24,000 $ 3,200 10-Apr Supplies Accounts Payable $ 3,200 $ 24,000 1-Jul Cash Unearned Revenue $ 24,000 $ 1,500 20-Jul Accounts Payable Cash $ 1,500 $ 18,000 15-Aug Accounts Receivable Service Revenue $ 18,000 $ 8,400 15-Sep Cash Service Revenue $ 8,400 $ 12,000 1-Oct Salaries expense Cash $ 12,000 $ 15,000 15-Oct Cash Accounts Receivable $ 15,000 $ 42,000 16-Nov Accounts Receivable Service Revenue $ 42,000 $ 15,000 1-Dec Dividends Cash $ 15,000 $ 12,000 = 24,000*6/12 31-Dec Unearned Revenue Service Revenue $ 12,000 $ 3,600 31-Dec Salaries expense Salaries Payable $ 3,600 $ 11,000 =24,000/24*11 31-Dec Rent expense Prepaid Rent $ 11,000 $ 2,920 =3,200-280 31-Dec Supplies expense Supplies $ 2,920

Closing entries 31-Dec Service Revenue Retained Earnings $ 80,400 $ 80,400 $ 29,520 31-Dec Retained Earnings Salaries expense Rent expense Supplies expense $ $ $ 15,600 11,000 2,920 $ 15,000 31-Dec Retained Earnings Dividends $ 15,000

T Accounts Date Debit Date Credit Cash 30-Jan $ 45,000 1-Feb $ 24,000 1-Jul $ 24,000 20-Jul $ 1,500 15-Sep $ 8,400 1-Oct $ 12,000 15-Oct $ 15,000 1-Dec $ 15,000 Date Debit Date Credit Accounts Receivable 15-Aug $ 18,000 15-Oct $ 15,000 16-Nov $ 42,000 Date Debit Date Credit Prepaid Rent 1-Feb $ 24,000 31-Dec $11,000 Date Debit Date Credit Supplies 10-Apr $ 3,200 31-Dec $ 2,920 Bal. Bal. Bal. $ 39,900 Accounts Payable 20-Jul $ 1,500 10-Apr $ 3,200 Bal. $ 45,000 Unearned Revenue 31-Dec $ 12,000 1-Jul $ 24,000 $ 13,000 Salaries Payable 31-Dec $ 3,600 $ 280 Common Stock 30-Jan $ 45,000 Bal. $ 3,600 $ 45,000 Bal. $ 1,700 Retained Earnings 31-Dec $ 29,520 31-Dec $ 80,400 31-Dec $ 15,000 Bal. $ 12,000 Dividends 1-Dec $ 15,000 31-Dec $ 15,000 Rent expense Bal. $ Salaries expense 1-Oct $ 12,000 31-Dec $ 3,600 Supplies expense 31-Dec $ 2,920 Bal. $ 35,880 Service Revenue 15-Aug $ 18,000 15-Sep $ 8,400 16-Nov $ 42,000 31-Dec $ 80,400 31-Dec $ 12,000 31-Dec $ 11,000 31-Dec $ 15,600 31-Dec $11,000 31-Dec $ 2,920 Bal. $ - Bal. $ - Bal. $ - Bal.

Smith Training Co Account Cash Accounts Receivable Prepaid Rent Supplies Accounts Payable Unearned Revenue Salaries Payable Common Stock Retained Earnings Dividends Service Revenue Salaries expense Rent expense Supplies expense Totals Adjusted TB Debit Credit 39,900 45,000 13,000 280 1,700 12,000 3,600 45,000 15,000 80,400 15,600 11,000 2,920 142,700 142,700