Question

Required information Exercise 3-21A Complete the accounting cycle (LO3-3, 3-4, 3-5, 3-6) On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Debit $24,300 5,700 3,600 55,000 $ 3,700 70,000 14,900 $88,600 $88,600 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $7,500 ($625/month). January 9 Purchase additional supplies on account, $4,000. January 13 Provide services to customers on account, $26,000. January 17 Receive cash in advance from customers for services to be provided in the future, $4,200. January 20 Pay cash for salaries, $12,000. January 22 Receive cash on accounts receivable, $24,600. January 29 Pay cash on accounts payable, $4,500. Exercise 3-21A Part 2 a. Rent for the month of January has expired. b. Supplies remaining at the end of January total $3,300. c. By the end of January, $3,575 of services has been provided to customers who paid in advance on January 17, d. Unpaid salaries at the end of January are $5,450. 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 Record the adjusting entry for rent. Rent for the month of January has expired. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general journal

Answer 1

Prepare Journal Entries as follows:

Credit Date Jan. 02 Account Titles Prepaid Rental Cash Debit $7,500 $7.500 Jan. 09 $4,000 Supplies Accounts payable $4.000 Jan 13 $26.000 Accounts receivable Service revenue $26.000 Jan. 17 $4.200 Cash Unearned service revenue $4,200 Jan. 20 $12.000 Salaries expense Cash $12.000 Jan. 22 $24.600 Cash Accounts receivable $24.600 Jan. 29 $4,500 Accounts payable Cash $4,500

Credit Date Jan. 31 Adjusted Entries Account Titles Rental Expense Prepaid Rental Debit $625 $625 Jan. 31 $4,300 Supplies expense Supplies ($3600+S4000-$3300) $4,300 Jan. 31 $3.575 Unearned service revenue Service revenue $3,575 Jan. 31 $5.450 Salaries expense Salaries payable $5,450

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Prepare T-accounts as follows:

Cash
Beg. Bal.	$24,300	Jan. 02	$7,500
Jan. 17	$4,200	Jan. 20	$12,000
Jan. 22	$24,600	Jan. 29	$4,500
End. Bal	$29,100
Supplies
Beg. Bal.	$3,600	Jan. 31	$4,300
Jan. 09	$4,000
End. Bal	$3,300
Supplies expense
Beg. Bal.	-
Jan. 31	$4,300
End. Bal	$4,300
Prepaid Rental
Beg. Bal.	-	Jan. 31	$625
Jan. 02	$7,500
End. Bal	$6,875
Rental Expense
Beg. Bal.	-
Jan. 31	$625
End. Bal	$625
Accounts receivable
Beg. Bal.	$5,700	Jan. 22	$24,600
Jan. 13	$26,000
End. Bal	$7,100
Accounts payable
Jan. 29	$4,500	Beg. Bal.	$3,700
		Jan. 09	$4,000
		End. Bal.	$3,200
Service revenue
		Beg. Bal.	-
		Jan. 13	$26,000
		Jan. 31	$3,575
		End. Bal.	$29,575
Unearned service revenue
		Beg. Bal.	-
Jan. 31	$3,575	Jan. 17	$4,200
		End. Bal.	$625
Salaries payable
		Beg. Bal.	-
		Jan. 31	$5,450
		End. Bal.	$5,450
Salaries Expense
Beg. Bal.	-
Jan. 20	$12,000
Jan. 31	$5,450
End. Bal	$17,450

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Prepare Adjusted Trial balance as follows:

Adjusted Trial Balance
	Debit	Credit
Cash	$29,100
Accounts receivable	$7,100
Supplies	$3,300
Prepaid Rental	$6,875
Land	$55,000
Accounts payable		$3,200
Unearned Service revenue		$625
Service revenue		$29,575
Salaries payable		$5,450
Supplies expense	$4,300
Rent expense	$625
Salaries expense	$17,450
Common stock		$70,000
Retained earnings		$14,900
Total	$123,750	$123,750