2. Record the adjusting entries at the end of the year.

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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[The following information applies to the questions displayed below.]
On January 1, 2021, Red Flash Photography had the following balances: Cash, $19,000; Supplies, $8,700; Land, $67,000;
Deferred Revenue, $5,700; Common Stock $57,000; and Retained Earnings, $32,000. During 2021, the company had the
following transactions:
1. February 15 Issue additional shares of common stock, $27,000.
2. May
3. August 31 Pay salaries to employees for work in 2021, $30,000.
4. October 1 Purchase rental space for one year, $19,000.
5. November 17 Purchase supplies on account, $29,000.
6. December 30 Pay dividends, $2,700.
The following information is available on December 31, 2021:
1. Employees are owed an additional $4,700 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,700 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
20 Provide services to customers for cash, $42,000, and on account, $37,000.
2. Record the adjusting entries at the end of the year. (If no entry is required for a particular transaction/event, select "No Journal
Entry Required" in the first account field. Do not round intermediate calculations.)
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] On January 1, 2021, Red Flash Photography had the following balances: Cash, $19,000; Supplies, $8,700; Land, $67,000; Deferred Revenue, $5,700; Common Stock $57,000; and Retained Earnings, $32,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $27,000. 2. May 3. August 31 Pay salaries to employees for work in 2021, $30,000. 4. October 1 Purchase rental space for one year, $19,000. 5. November 17 Purchase supplies on account, $29,000. 6. December 30 Pay dividends, $2,700. The following information is available on December 31, 2021: 1. Employees are owed an additional $4,700 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $5,700 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed. 20 Provide services to customers for cash, $42,000, and on account, $37,000. 2. Record the adjusting entries at the end of the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
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