davidebner2248
08.03.2021 •
Business
On January 1, 2021, Red Flash Photography had the following balances: Cash, $25,000; Supplies, $9,300; Land, $73,000; Deferred Revenue, $6,300; Common Stock $63,000; and Retained Earnings, $38,000. During 2021, the company had the following transactions:
1. February 15 Issue additional shares of common stock, $33,000.
2. May 20 Provide services to customers for cash, $48,000, and on account, $43,000.
3. August 31 Pay salaries to employees for work in 2021, $36,000.
4. October 1 Purchase rental space for one year, $25,000.
5. November 17 Purchase supplies on account, $35,000.
6. December 30 Pay dividends, $3,300.
The following information is available on December 31, 2021:
a. Employees are owed an additional $5,300 in salaries.
b. Three months of the rental space has expired.
c. Supplies of $6,300 remain on hand.
d. All of the services associated with the beginning deferred revenue have been performed.
Required:
a. Record each of the transactions listed above.
b. Record the adjusting entries.
c. Prepare an income statement for the year ended December 31, 2022, in the 'Income Statement'
d. Prepare the statement of Stockholder's Equity For the year ended December 21, 2021.
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Ответ:
Red Flash Photography
a. Journal Entries:
1. Feb. 15:
Debit Cash $33,000
Credit Common Stock $33,000
2. May 20:
Debit Cash $48,000
Debit Accounts Receivable $43,000
Credit Service Revenue $91,000
3. Aug. 31:
Debit Salaries Expense $36,000
Credit Cash $36,000
4. Oct. 1:
Debit Prepaid Rent $25,000
Credit Cash $25,000
5. Nov. 17:
Debit Supplies $35,000
Credit Account Payable $35,000
6. Dec. 30:
Debit Dividends $3,300
Credit Cash $3,300
b. Adjusting Journal Entries:
a. Debit Salaries Expense $5,300
Credit Salaries Payable $5,300
b. Debit Rent Expense $6,250
Credit Prepaid Rent $6,250
c. Debit Supplies Expense $38,000
Credit Supplies $38,000
d. Debit Deferred Revenue $6,300
Credit Service Revenue $6,300
c. Income Statement for the year ended December 31, 2022:
Service Revenue $97,300
Salaries Expense 41,300
Rent Expense 6,250
Supplies Expense 38,000
Dividends 3,300 $88,850
Net Income $8,450
d. Statement of Stockholders' Equity
For the year ended December 31, 2022:
Common Stock $96,000
Beginning retained earnings 38,000
Net Income 8,450
Dividends (3,300)
Ending Equity $139,150
Explanation:
a) Data and Calculations:
Trial balance
Account Titles Debit Credit
Cash $25,000
Supplies $9,300
Land $73,000
Deferred Revenue $6,300
Common Stock $63,000
Retained Earnings $38,000
Totals $107,300 $107,300
Analysis of Transactions:
1. Feb. 15: Cash $33,000 Common Stock $33,000
2. May 20: Cash $48,000 Accounts Receivable $43,000 Service Revenue $91,000
3. Aus. 31: Salaries Expense $36,000 Cash $36,000
4. Oct. 1: Prepaid Rent $25,000 Cash $25,000
5. Nov. 17: Supplies $35,000 Account Payable $35,000
6. Dec. 30: Dividends $3,300 Cash $3,300
Adjustments:
a. Salaries Expense $5,300 Salaries Payable $5,300
b. Rent Expense $6,250 Prepaid Rent $6,250
c. Supplies Expense $38,000 Supplies $38,000 ($9,300+35,000-6,300)
d. Deferred Revenue $6,300 Service Revenue $6,300
T-accounts:
Cash
Account Titles Debit Credit
Beginning balance $25,000
Common stock 33,000
Service Revenue 48,000
Salaries $36,000
Prepaid Rent 25,000
Dividends 3,300
Ending balance 41,700
Prepaid Rent
Account Titles Debit Credit
Cash $25,000
Rent Expense $6,250
Ending balance 18,750
Accounts Receivable
Account Titles Debit Credit
Service Revenue $43,000
Supplies
Account Titles Debit Credit
Beginning balance $9,300
Accounts payable 35,000
Supplies Expense $38,000
Ending balance $6,300
Land
Account Titles Debit Credit
Beginning balance $73,000
Deferred Revenue
Account Titles Debit Credit
Beginning balance $6,300
Service Revenue $6,300
Accounts Payable
Account Titles Debit Credit
Supplies $35,000
Salaries Payable
Account Titles Debit Credit
Salaries expense $5,300
Common Stock
Account Titles Debit Credit
Beginning balance $63,000
Cash 33,000
Ending balance $96,000
Retained Earnings
Account Titles Debit Credit
Beginning balance $38,000
Service Revenue
Account Titles Debit Credit
Cash $48,000
Accounts Receivable 43,000
Deferred Revenue 6,300
Income Summary $97,300
Salaries Expense
Account Titles Debit Credit
Cash $36,000
Salaries Payable 5,300
Income Summary $41,300
Rent Expense
Account Titles Debit Credit
Prepaid Rent $6,250
Income Summary $6,250
Supplies Expense
Account Titles Debit Credit
Supplies $38,000
Income Summary $38,000
Dividends
Account Titles Debit Credit
Cash $3,300
Retained earnings $3,300
Adjusted Trial Balance
Account Titles Debit Credit
Cash $41,700
Prepaid Rent 18,750
Accounts receivable 43,000
Supplies 6,300
Land 73,000
Accounts payable $35,000
Salaries payable 5,300
Common Stock 96,000
Retained earnings 38,000
Service Revenue 97,300
Salaries Expense 41,300
Rent Expense 6,250
Supplies Expense 38,000
Dividends 3,300
Totals $271,600 $271,600
Ответ:
2. squatters cannot mortgage, or borrow against, the land.
3.Squatters cannot legally sell the land they occupy.