Question

9:54 oblem 3-32A Part d here comes to changes in these bloce che andra fun of Casheed bindwe WITH THIS COMINY VW االالالالالا 5 8 9 E R T Y 1 P D F G H J K

Answer 1

Prepare journal entry as follows:

Date	Account Titles	Debit	Credit
Jan. 30	Cash	$45,000
	Common stock		$45,000
Feb. 01	Prepaid rent	$24,000
	Cash		$24,000
Apr. 01	Supplies	$3,200
	Accounts payable		$3,200
Jul. 01	Cash	$24,000
	Unearned revenue		$24,000
Jul. 20	Accounts payable	$1,500
	Cash		$1,500
Aug. 15	Accounts receivable	$18,000
	Service revenue		$18,000
Sept. 15	Cash	$8,400
	Service revenue		$8,400
Oct. 01	Salaries Expense	$12,000
	Cash		$12,000
Oct. 15	Cash	$15,000
	Accounts receivable		$15,000
Nov. 16	Accounts receivable	$42,000
	Service revenue		$42,000
Dec. 01	Dividends	$15,000
	Cash		$15,000
Dec. 31	Unearned revenue	$12,000
	Service revenue		$12,000
	[$24000/12] * 6 months
Dec. 31	Salaries Expense	$3,600
	Salaries payable		$3,600
Dec. 31	Rent Expense	$11,000
	Prepaid rent		$11,000
	[$24000/24 months] * 11 months
Dec. 31	Supplies Expense	$2,920
	Supplies [$3200 - $280]		$2,920

____________________________________________________________

Service revenue
Date	Debit	Credit	Balance
Aug. 15		$18,000	$18,000
Sep. 15		$8,400	$26,400
Nov. 16		$42,000	$68,400
Dec. 31		$12,000	$80,400
Salaries Expense
Date	Debit	Credit	Balance
Oct. 01	$12,000		$12,000
Dec. 31	$3,600		$15,600
Rent Expense
Date	Debit	Credit	Balance
Dec. 31	$11,000		$11,000
Supplies Expense
Date	Debit	Credit	Balance
Dec. 31	$2,920		$2,920
Dividends
Date	Debit	Credit	Balance
Dec. 01	$15,000		$15,000

___________________________________________

Income Statement
Service revenue		$80,400
Expenses:
Salaries Expense	$15,600
Rent Expense	$11,000
Supplies Expense	$2,920	$29,520
Net Income		$50,880
Statement of changes in stockholders' equity
Beg. Bal		$0
Add: net Income		$50,880
Less: Dividends		($15,000)
End. Bal.		$35,880

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