The following events apply to Paradise Vacations's first year of operations: 1. Acquired $32,000 cash from the issue of common stock on January 1, Year 1. 2. Purchased $1,400 of supplies on account. 3. Paid $5,640 cash in advance for a one-year lease on office space. 4. Earned $40,350 of revenue on account. 5. Incurred $14,300 of other operating expenses on account. 6. Collected $30,000 cash from accounts receivable. 7. Paid $9,600 cash on accounts payable. 8. Paid a $4,200 cash dividend to the stockholders. Information for Adjusting Entries 9. There was $270 of supplies on hand at the end of the accounting period. 10. The lease on the office space covered a one-year period beginning November 1. 11. There was $4,800 of accrued salaries at the end of the period. Required a. Record these transactions in general journal form. b. Post the transaction data from the journal to ledger T-accounts. c. Prepare a trial balance.
The following events apply to Paradise Vacations's first year of operations: 1. Acquired $32,000 cash from the issue of common stock on January 1, Year 1. 2. Purchased $1,400 of supplies on account. 3. Paid $5,640 cash in advance for a one-year lease on office space. 4. Earned $40,350 of revenue on account. 5. Incurred $14,300 of other operating expenses on account. 6. Collected $30,000 cash from accounts receivable. 7. Paid $9,600 cash on accounts payable. 8. Paid a $4,200 cash dividend to the stockholders. Information for Adjusting Entries 9. There was $270 of supplies on hand at the end of the accounting period. 10. The lease on the office space covered a one-year period beginning November 1. 11. There was $4,800 of accrued salaries at the end of the period. Required a. Record these transactions in general journal form. b. Post the transaction data from the journal to ledger T-accounts. c. Prepare a trial balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Assets
Total assets
Liabilities
PARADISE VACATIONS
Balance Sheet
As of December 31, Year 1
Total liabilities
Stockholders' Equity
Total stockholders' equity
Total liabilities and stockholders' equity
Show Transcribed Text
Cash flows from operating activities
Net cash flow from operating activities
Cash flows from investing activities
Cash flows from financing activities
PARADISE VACATIONS
Statement of Cash Flows
For the Year ended December 31, Year 1
Net cash flow from financing activities
Net change in cash
$
Ending cash balance.
$
$
$
$
+
0
0
0
0
0
0
0

Transcribed Image Text:The following events apply to Paradise Vacations's first year of operations:
1. Acquired $32,000 cash from the issue of common stock on January 1, Year 1.
2. Purchased $1,400 of supplies on account.
3. Paid $5,640 cash in advance for a one-year lease on office space.
4. Earned $40,350 of revenue on account.
5. Incurred $14,300 of other operating expenses on account.
6. Collected $30,000 cash from accounts receivable.
7. Paid $9,600 cash on accounts payable.
8. Paid a $4,200 cash dividend to the stockholders.
Information for Adjusting Entries
9. There was $270 of supplies on hand at the end of the accounting period.
10. The lease on the office space covered a one-year period beginning November 1.
11. There was $4,800 of accrued salaries at the end of the period.
Required
a. Record these transactions in general journal form.
b. Post the transaction data from the journal to ledger T-accounts.
c. Prepare a trial balance.
d-1. Prepare an income statemen
d-2. Prepare a statement of changes in stockholders' equity.
d-3. Prepare a balance sheet.
d-4. Prepare a statement of cash flows.
Show Transcribed Text
Service revenue
Expenses
PARADISE VACATIONS
Income Statement
For the Year ended December 31, Year 1
$
Other operating expense
Rent expense
Salaries expense
Supplies expense
Total expenses
Net income
Ű
Show Transcribed Text
Beginning common stock
3
$ 14,300
940
Ć
4,800
1,130
PARADISE VACATIONS
Statement of Changes in Stockholders' Equity
For the Year ended December 31, Year 1
$ 32,000
+
40,350
21,170
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