1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Wewaii [24]
2 years ago
7

On January 1, 2021, Red Flash Photography had the following balances: Cash, $20,000; Supplies, $8,800; Land, $68,000; Deferred R

evenue, $5,800; Common Stock $58,000; and Retained Earnings, $33,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $28,000. 2. May 20 Provide services to customers for cash, $43,000, and on account, $38,000. 3. August 31 Pay salaries to employees for work in 2021, $31,000. 4. October 1 Paid for one year's rent in advance, $20,000. 5. November 17 Purchase supplies on account, $30,000. 6. December 30 Pay dividends, $2,800.
The following information is available on December 31, 2021:
1. Employees are owed an additional $4,800 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,800 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
Business
1 answer:
Vilka [71]2 years ago
4 0

Answer:

A. 15-Feb

Dr Cash $ 28,000.00

Cr Common Stock $ 28,000.00

20-May

Dr Cash $ 43,000.00

CrAccounts Receivable $ 38,000.00

Cr To Service Revenue $ 81,000.00

31-Aug

Dr Salaries Expense $ 31,000.00

Cr To Cash $ 31,000.00

1-Oct

Dr Prepaid Rent $ 20,000.00

Cr To Cash $ 20,000.00

17-Nov Dr Supplies $ 30,000.00

Cr Accounts Payable $ 30,000.00

30-Dec

Dr Dividends $ 2,800.00

Cr Cash $ 2,800.00

31-Dec

Dr Salaries Expense $ 4,800.00

Cr Salaries Payable $ 4,800.00

31-Dec

Dr Rent Expense $ 5,000.00

Cr Prepaid Rent $ 5,000.00

31-Dec

Dr Supplies Expense $ 33,000.00

Cr Supplies $ 33,000.00

31-Dec

Dr Deferred Revenue $ 5,800.00

Cr Service Revenue $ 5,800.00

B. $ 13,000.00

C. $ 43,200.00

D.TOTAL ASSETS $ 164,000.00

TOTAL LIABILITIES and EQUITY $ 164,000.00

Explanation:

Preparation of General Journal, Income Statement, Statement of SE, Balance Sheet

15-Feb

Dr Cash $ 28,000.00

Cr Common Stock $ 28,000.00

20-May

Dr Cash $ 43,000.00

CrAccounts Receivable $ 38,000.00

Cr To Service Revenue $ 81,000.00

31-Aug

Dr Salaries Expense $ 31,000.00

Cr To Cash $ 31,000.00

1-Oct

Dr Prepaid Rent $ 20,000.00

Cr To Cash $ 20,000.00

17-Nov Dr Supplies $ 30,000.00

Cr Accounts Payable $ 30,000.00

30-Dec

Dr Dividends $ 2,800.00

Cr Cash $ 2,800.00

31-Dec

Dr Salaries Expense $ 4,800.00

Cr Salaries Payable $ 4,800.00

31-Dec

Dr Rent Expense $ 5,000.00

Cr Prepaid Rent $ 5,000.00

($ 20000 x 3/12)

31-Dec

Dr Supplies Expense $ 33,000.00

Cr Supplies $ 33,000.00

($ 8800 + $ 30000 - $ 5800)

31-Dec

Dr Deferred Revenue $ 5,800.00

Cr Service Revenue $ 5,800.00

B. Preparation of INCOME STATEMENT

Service REVENUE $ 86,800.00

Less: EXPENSES

Salaries Expense $ 35,800.00

Rent Expense $ 5,000.00

Supplies Expense $ 33,000.00

Net Income $ 13,000.00

($ 86,800.00-$ 73,800.00)

Therefore the income statement will be $ 13,000.00

Calculation for the STATEMENT OF RETAINED EARNINGS

Beginning Balance $ 33,000.00

Add: Net Income $ 13,000.00

Less: Dividends $ (2,800.00)

Ending Balance $ 43,200.00

Therefore retained earnings will be $ 43,200.00

D. Preparation of BALANCE SHEET

ASSETS

Cash $ 37,200.00

Accounts Receivable $ 38,000.00

Prepaid Rent $ 15,000.00

Supplies $ 5,800.00

Land $ 68,000.00

TOTAL ASSETS $ 164,000.00

LIABILITIES and EQUITY

Liabilities

Accounts Payable $ 30,000.00

Salaries Payable $ 4,800.00

Total Liabilities $ 34,800.00

Equity

Common stock $ 86,000.00

Retained Earnings $ 43,200.00

Total Equity $ 129,200.00

TOTAL LIABILITIES and EQUITY $ 164,000.00

Therefore the balance sheet will be

ASSETS $ 164,000.00

TOTAL LIABILITIES and EQUITY $ 164,000.00

You might be interested in
Imagine that a local water company issued $10,000 ten-year bond at an interest rate of 6%. You are thinking about buying this bo
mylen [45]

Answer:

Explanation:

The $10,000 is the face value of the bond. Using a financial calculator, input the following to calculate the price at a year before maturity; i.e. at year 9;

Time to maturity; N = 10 - 9 = 1

Annual interest rate; I/Y = 9%

Annual coupon payment; PMT = 0

Face value of the bond; FV = 10,000

then compute present value ; CPT PV = $9,174.31

Therefore, you will pay less than $10,000 for the bond and the price would be  as above $9,174.31

6 0
3 years ago
What are business letters ​
vichka [17]
Professional letters for business
8 0
3 years ago
Which budgetary category changed the most between your old budget and your new budget? Why?
Sunny_sXe [5.5K]

Answer:

The net savings changed the most, and this is because of the extra money coming in via total income. An extra $290.00 was added to the category.

Explanation:

7 0
2 years ago
Sarah is using the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are
levacccp [35]

Answer:

$130,000

Explanation:

Sarah is making use of the needs approach to determine how much life insurance to buy

The first step is to calculate the total amount of life insurance

Total amount of life insurance = Total needs - total assets

Total need = income needs + cash needs + special needs

= $140,000 + $30,000 + $100,000

= $270,000

Total assets= retirement plan + bank account + investment account

= $30,000 + $20,000 + $40,000

= $90,000

Total amount of life insurance = $270,000-$90,000

= $180,000

Since Sarah is covered by $50,000 group insurance by her employer then the additional life insurance that should be purchased can be calculated as follows

= $180,000 - $50,000

= $130,000

3 0
3 years ago
Which of these features of modern urban mass transit is most important?
sasho [114]
The 1rst one
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
8 0
3 years ago
Other questions:
  • The management of Furrow Corporation is considering dropping product L07E. Data from the company’s budget for the upcoming year
    14·1 answer
  • The two-step process of reporting includes
    5·1 answer
  • Jamison's gross tax liability is $7,200. Jamison had $2,625 of available credits and he had $4,400 of taxes withheld by his empl
    7·1 answer
  • James reported to the board of directors that it would be unlikely for them to expand the manufacturing facility in Brussels, Be
    5·1 answer
  • Pearson Company bought a machine on January 1, 2014. The machine cost $144,000 and had an expected salvage value of $24,000. The
    12·1 answer
  • A car insurance policy has a $500 deductible for comprehensive coverage and a $1000
    8·2 answers
  • Jimmy is an employee of Roofing, Inc., which is performing a contract for the federal government. Jimmy learns that Roofing, Inc
    9·1 answer
  • Indiana Co. began a construction project in 2021 with a contract price of $161 million to be received when the project is comple
    10·1 answer
  • What is the primary role of individuals as participants in the money market?
    8·2 answers
  • Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department fol
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!