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.

Required
a. Record the preceding transactions in the general journal, in the given order. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Established the business when it acquired $48,000 cash from the issue of common stock.

2. Paid rent for office space for two years, $17,400 cash.

3. Purchased $880 of supplies on account.

4. Received $28,000 cash in advance for services to be provided over the next year.

5. Paid $660 of the accounts payable from April 10.

6. Billed a customer $9,300 for services provided during August.

7. Completed a job and received $2,600 cash for services rendered.

8. Paid employee salaries of $31,000 cash.

9. Received $8,700 cash from accounts receivable.

10. Billed customers $31,500 for services rendered on account.

11. Paid a dividend of $1,100 cash to the stockholders.

12. Adjusted records to recognize the services provided on the contract of July 1.

13. Recorded $2,500 of accrued salaries as of December 31.

14. Recorded the rent expense for the year. (See February 1.)

15. Physically counted supplies; $80 was on hand at the end of the period.

Answer 1

Date Credit Particulars 30-Jan Cash a/c Common Stock a/c Debit 48000 48000 17400 1-Feb Prepaid Rent Cash a/c 17400 10-Apr Supplies a/c Accounts Payable 880 28000 1-Jul Cash A/C Unearned Revenue arned Revenue 28000 660 20-Jul Accounts Payable a/c Cash a/c 660 9300 15-Aug Accounts Receivable a/c Service Revenuea/c 9300 2600 15-Sep Cash a/c Service Revenue a/c 2600 31000 1-Oct Salaries Cash A/C 31000 8700 15-Oct Cash A/C Accounts Receivable A/C 8700 31500 16-Nov Accounts Receivable a/c Service Revenuea/c 31500 1100 1-Dec Dividend A/c Cash A/C 1100

14000 31-Dec Unearned Revenue Service Revenuea/c 14000 2500 31-Dec Salaries a/c Salaries payable a/c 2500 7975 31-Dec Rent a/c Prepaid Rent 7975 800 31-Dec Supplies Expense a/c Supplies a/c 800 Working Note Rent for 2 years Rent for one month Rent for 11 months of First year 17400 725 7975