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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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