Question

A) Record the adjusting entries at the end of the year for:

1. Salaries

Required information [The following information applies to the questions displayed below.] On January 1, 2021, Red Flash Photography had the following balances: Cash, $16,000; Supplies, $8,400, Land, $64,000; Deferred Revenue, $5,400; Common Stock $54,000; and Retained Earnings, $29,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $24,000. 2. May 20 Provide services to customers for cash, $39,000, and on account, $34,000. 3. August 31 Pay salaries to employees for work in 2021, $27,000. 4. October 1 Purchase rental space for one year, $16,000. 5. November 17 Purchase supplies on account, $26,000. 6. December 30 Pay dividends, $2,400. The following information is available on December 31, 2021: 1. Employees are owed an additional $4,400 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $5,400 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed. 2. Record the adjusting entries at the end of the year. (If no entry is required for a particular transaction/event, select "No Journal Entru Denuired" in the firet Account field Do not raind intormarlista calculatione

2. Rent

3. Supplies

4. Deferred revenue

B) Prepare an adjusted trial balance

C) Prepare an income statement, statement of stockholder's equity, and classified balance sheet

D) Prepare closing entries for

1. Revenue accounts

2. Expense accounts

3. Dividend accounts

Answer 1

a.

outstanding salary a/c	dr.	4400
salaries a/c			4400
rent expense a/c	dr.	4000
prepaid rent a/c			4000
supplies expenses a/c	dr.	29000
supplies a/c			29000
unearned revenue a/c	dr.	5400
revenue a/c			5400

b.

TRIAL BALANCE
31-Dec-21
cash	33600
supplies	5400
accounts receivable	34000
rent expenses	4000
prepaid rent	12000
land	64000
outstanding salary	4400
salary	27000
dividends	2400
creditors		26000
supplies expenses	29000
revenue		78400
common stock		78000
retained earnings		43000

I am sorry, but I am not able to balance the trial balance. I tried it many times. You are possibly missing some items, or the question is not completed. Sorry for that.

c.

income statement
revenue	73000
unearned revenue	5400
	78400
expenses
salaries	27000
outstanding	4400
rent expense	4000
supplies	29000
	64400
net profit	14000

stockholders equity
31/12/2021
	common stock	retained earnings	total stockholders equity
balance as on jan 1	54000	29000	83000
issue of shares for cash	24000		24000
net income		14000	14000
cash dividends		-2400	-2400
balance as on dec 31			118600

balance sheet
31/12/2021
assets
current assets
cash		33600
supplies		5400
accounts receivable		34000
prepaid rent		12000
non current assets
land		64000
total assets		149000
liabilities
current liabilities
outstanding salary		4400
creditors		26000
equity
common stock		78000
retained earnings	43000
less dividends	2400	40600
total liabilities		149000

d.

revenues a/c	73000
deferred revenue a/c	5400
income summary		78400
retained earnings a/c	2400
dividends		2400
income summary	64400
salaries		27000
rent expense		4000
supplies expense		29000
outstanding salaries		4400