The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $50,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $24,000 cash. Apr. 10 Purchased $790 of supplies on account. July 1 Received $23,500 cash in advance for services to be provided over the next year. 20 Paid $593 of the accounts payable from April 10. Aug. 15 Billed a customer $10,100 for services provided during August. Sept. 15 Completed a job and received $2,600 cash for services rendered. Oct. 1 Paid employee salaries of $36,500 cash. 15 Received $9,200 cash from accounts receivable. Nov. 16 Billed customers $37,500 for services rendered on account. Dec. 1 Paid a dividend of $600 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,400 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $50 was on hand at the end of the period. Prepare a trial balance.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting 

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[The following information applies to the questions displayed below.]
The following transactions pertain to Smith Training Company for Year 1:
Jan. 30 Established the business when it acquired $50,000 cash from the issue of common stock.
Feb.
1 Paid rent for office space for two years, $24,000 cash.
Apr. 10 Purchased $790 of supplies on account.
July 1 Received $23,500 cash in advance for services to be provided over the next year.
20 Paid $593 of the accounts payable from April 10.
Aug. 15 Billed a customer $10,100 for services provided during August.
Sept. 15 Completed a job and received $2,600 cash for services rendered.
Oct.
1 Paid employee salaries of $36,500 cash.
15 Received $9,200 cash from accounts receivable.
Nov. 16 Billed customers $37,500 for services rendered on account.
Dec.
1 Paid a dividend of $600 cash to the stockholders.
31 Adjusted records to recognize the services provided on the contract of July 1.
31 Recorded $2,400 of accrued salaries as of December 31.
31 Recorded the rent expense for the year. (See February 1.)
31 Physically counted supplies; $50 was on hand at the end of the period.
c. Prepare a trial balance.
SMITH TRAINING COMPANY
Trial Balance
December 31, Year 1
Debit
Account Titles
Credit
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $50,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $24,000 cash. Apr. 10 Purchased $790 of supplies on account. July 1 Received $23,500 cash in advance for services to be provided over the next year. 20 Paid $593 of the accounts payable from April 10. Aug. 15 Billed a customer $10,100 for services provided during August. Sept. 15 Completed a job and received $2,600 cash for services rendered. Oct. 1 Paid employee salaries of $36,500 cash. 15 Received $9,200 cash from accounts receivable. Nov. 16 Billed customers $37,500 for services rendered on account. Dec. 1 Paid a dividend of $600 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,400 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $50 was on hand at the end of the period. c. Prepare a trial balance. SMITH TRAINING COMPANY Trial Balance December 31, Year 1 Debit Account Titles Credit
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