The following transactions pertain to Smith Training Company for Year 1: January 30 Established the business when it acquired $50,000 cash from the issue of common stock. February 1 Paid rent for office space for two years, $15,400 cash. April 10 Purchased $730 of supplies on account. July 1 Received $24,500 cash in advance for services to be provided over the next year. July 20 Paid $548 of the accounts payable from April 10. August 15 Billed a customer $9,600 for services provided during August. September 15 Completed a job and received $2,600 cash for services rendered. October 1 Paid employee salaries of $33,500 cash. October 15 Received $8,700 cash from accounts receivable. November 16 Billed customers $35,000 for services rendered on account. December 1 Paid a dividend of $1,500 cash to the stockholders. December 31 Adjusted records to recognize the services provided on the contract of July 1. December 31 Recorded $2,200 of accrued salaries as of December 31. December 31 Recorded the rent expense for the year. (See February 1.) December 31 Physically counted supplies; $50 was on hand at the end of the period. Required a. Record the preceding transactions in the general journal. b. Post the transactions to T - accounts. (You will also post the closing entries in Req E to these T-accounts.) c. Prepare an adjusted Trial Balance. d-1. Prepare an income statement for Year 1. d-2. Prepare a statement of changes in stockholders' equity for Year 1. d-3. Prepare a balance sheet for Year 1. d-4. Prepare a statement of cash flows for Year 1. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts. f. Prepare a post-closing trial balance for December 31, Year 1.
The following transactions pertain to Smith Training Company for Year 1: January 30 Established the business when it acquired $50,000 cash from the issue of common stock. February 1 Paid rent for office space for two years, $15,400 cash. April 10 Purchased $730 of supplies on account. July 1 Received $24,500 cash in advance for services to be provided over the next year. July 20 Paid $548 of the accounts payable from April 10. August 15 Billed a customer $9,600 for services provided during August. September 15 Completed a job and received $2,600 cash for services rendered. October 1 Paid employee salaries of $33,500 cash. October 15 Received $8,700 cash from accounts receivable. November 16 Billed customers $35,000 for services rendered on account. December 1 Paid a dividend of $1,500 cash to the stockholders. December 31 Adjusted records to recognize the services provided on the contract of July 1. December 31 Recorded $2,200 of accrued salaries as of December 31. December 31 Recorded the rent expense for the year. (See February 1.) December 31 Physically counted supplies; $50 was on hand at the end of the period. Required a. Record the preceding transactions in the general journal. b. Post the transactions to T - accounts. (You will also post the closing entries in Req E to these T-accounts.) c. Prepare an adjusted Trial Balance. d-1. Prepare an income statement for Year 1. d-2. Prepare a statement of changes in stockholders' equity for Year 1. d-3. Prepare a balance sheet for Year 1. d-4. Prepare a statement of cash flows for Year 1. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts. f. Prepare a post-closing trial balance for December 31, Year 1.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:The following transactions pertain to Smith Training Company for Year 1:
January 30 Established the business when it acquired $50,000 cash from the issue of common stock.
February 1 Paid rent for office space for two years, $15,400 cash.
April 10 Purchased $730 of supplies on account.
July 1 Received $24,500 cash in advance for services to be provided over the next year.
July 20 Paid $548 of the accounts payable from April 10.
August 15 Billed a customer $9,600 for services provided during August.
September 15 Completed a job and received $2,600 cash for services rendered.
October 1 Paid employee salaries of $33,500 cash.
October 15 Received $8,700 cash from accounts receivable.
November 16 Billed customers $35,000 for services rendered on account.
December 1 Paid a dividend of $1,500 cash to the stockholders.
December 31 Adjusted records to recognize the services provided on the contract of July 1.
December 31 Recorded $2,200 of accrued salaries as of December 31.
December 31 Recorded the rent expense for the year. (See February 1.)
December 31 Physically counted supplies; $50 was on hand at the end of the period.
Required
a. Record the preceding transactions in the general journal.
b. Post the transactions to T - accounts. (You will also post the closing entries in Req E to these T-accounts.)
c. Prepare an adjusted Trial Balance.
d-1. Prepare an income statement for Year 1.
d-2. Prepare a statement of changes in stockholders' equity for Year 1.
d-3. Prepare a balance sheet for Year 1.
d-4. Prepare a statement of cash flows for Year 1.
e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the
T-accounts.
f. Prepare a post-closing trial balance for December 31, Year 1.
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