Question

On January 1, 2021, Red Flash Photography had the following balances: Cash, $13,000; Supplies, $8,100; Land, $61,000; Deferred Revenue, $5,100; Common Stock $51,000; and Retained Earnings, $26,000. During 2021, the company had the following transactions:

1.		February		15		Issue additional shares of common stock, $21,000.
2.		May		20		Provide services to customers for cash, $36,000, and on account, $31,000.
3.		August		31		Pay salaries to employees for work in 2021, $24,000.
4.		October		1		Purchase rental space for one year, $13,000.
5.		November		17		Purchase supplies on account, $23,000.
6.		December		30		Pay dividends, $2,100.

The following information is available on December 31, 2021:

1. Employees are owed an additional $4,100 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,100 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Dates: Jan 01 to: Dec 30 General Ledger Account Cash Supplies Debit No. Debit Credit No. Credit Date Jan 01 Balance 13,000 Date Jan 01 Balance 8,100 Land Deferred Revenue No. Debit Credit No. Debit Credit Date Jan 01 Balance 61,000 Date Jan 01 Balance 5,100 Common Stock Retained Earnings Debit Credit No. Debit Credit No. Date Jan 01 Balance 51,000 Date Jan 01 Balance 26,000 < General Journal Trial Balance >

Answer 1

Journal Entries Cath alt Dr. 21000 Feb, is 21006 To Share Capital (common Stock issued (Beiceg Shaus for cash) 36,000 May 20 Cash , ale Dr. Account Receivable at Da 31,800 67600 ( Being To Service Income Jewicy rendered to Lesstomes and Cash Collected and accounted for remaining.) 24000 August, 31 Salanes al D Cash salanes Paid in Cash 2uDoo (Being Salarios Carh.)

13000 13000 TO Promather 23000 Carch) Oct - 1 - Rental Expenses at is Cash (Being Rental Space peus closed.) Nou: And Supplies at 23000 TO Cash (Being supplies purchased for Dec. 30 Dividend al- Do Cash (Being Divid and Paid.) Dec, 31 Co Salanes at 4100 To ofsalaues ( Being of of booked ) 2100 To 200 Dn. 14100

Dec 31 9750 ( To Prepaid Reutel Expens at a 9750 so Rental Expenses (Belug, Carried forward of Prepaid Р expenses ) Supplies Hond at Dec 31 on a 5.00 Isi 5100 TO Supplies and to ou Dec 31 hand (Being Supplies remain on 3,5t Dec, 2001) De ferred Reven al- To Revenue from Operation I Bring de sewices recorded ay deferred has been performed.) 51001 J100
By passing this journal entries the Trial balance as on 31st December, 2021 will get matched and the profit statement for the year ended is attached below.
Red Flash Photography Income Steelemente for the year ended Dec 31, 2021 Revenus $ 5100 revenue IO Revenue from Operation (Being Defensed to booked. Other Tom Services Proulded ( 36,000 + 31000) 'A 67000 72100 28100 Espeures. June und Salaurs ( 24000 + 4100) Reut ( 13000 9750) Supplécs 8100 + 23000 - 5100 ) & Deboldand o 3250 26,000 Total Bi 57350 Profit / Net Income. 14750 CA-B)
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