The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $54,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $30,000 cash. Apr. 10 Purchased $890 of supplies on account. July 1 Received $22,000 cash in advance for services to be provided over the next year. 20 Paid $668 of the accounts payable from April 10. Aug. 15 Billed a customer $10,500 for services provided during August. Sept. 15 Completed a job and received $2,500 cash for services rendered. Oct. 1 Paid employee salaries of $34,500 cash. 15 Received $8,400 cash from accounts receivable. Nov. 16 Billed customers $37,500 for services rendered on account. Dec. 1 Paid a dividend of $1,100 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,200 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $100 was on hand at the end of the period. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts.
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $54,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $30,000 cash. Apr. 10 Purchased $890 of supplies on account. July 1 Received $22,000 cash in advance for services to be provided over the next year. 20 Paid $668 of the accounts payable from April 10. Aug. 15 Billed a customer $10,500 for services provided during August. Sept. 15 Completed a job and received $2,500 cash for services rendered. Oct. 1 Paid employee salaries of $34,500 cash. 15 Received $8,400 cash from accounts receivable. Nov. 16 Billed customers $37,500 for services rendered on account. Dec. 1 Paid a dividend of $1,100 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,200 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $100 was on hand at the end of the period. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following transactions pertain to Smith Training Company for Year 1:
Jan. 30 Established the business when it acquired $54,000 cash from the issue of common stock.
Feb. 1 Paid rent for office space for two years, $30,000 cash.
Apr. 10 Purchased $890 of supplies on account.
July 1 Received $22,000 cash in advance for services to be provided over the next year.
20 Paid $668 of the accounts payable from April 10.
Aug. 15 Billed a customer $10,500 for services provided during August.
Sept. 15 Completed a job and received $2,500 cash for services rendered.
Oct. 1 Paid employee salaries of $34,500 cash.
15 Received $8,400 cash from accounts receivable .
Nov. 16 Billed customers $37,500 for services rendered on account.
Dec. 1 Paid a dividend of $1,100 cash to the stockholders.
31 Adjusted records to recognize the services provided on the contract of July 1.
31 Recorded $2,200 of accrued salaries as of December 31.
31 Recorded the rent expense for the year. (See February 1.)
31 Physically counted supplies; $100 was on hand at the end of the period.
e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts.
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