following transactions: 1. February 15 Issue additional shares of common stock, $30,000. 2. May 20 Provide services to customers for cash, $45,000, 3. August 31 Pay salaries to employees for work in 2021, $33,00 4. October 1 Purchase rental space for one year, $22,000. 5. November 17 Purchase supplies on account, $32,000. 6. December 30 Pay dividends, $3,000.
following transactions: 1. February 15 Issue additional shares of common stock, $30,000. 2. May 20 Provide services to customers for cash, $45,000, 3. August 31 Pay salaries to employees for work in 2021, $33,00 4. October 1 Purchase rental space for one year, $22,000. 5. November 17 Purchase supplies on account, $32,000. 6. December 30 Pay dividends, $3,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
9
![Required information
[The following information applies to the questions displayed below.]
On January 1, 2021, Red Flash Photography had the following balances: Cash, $22,000; Supplies, $9,000; Land, $70,000;
Deferred Revenue, $6,000; Common Stock $60,000; and Retained Earnings, $35,000. During 2021, the company had the
following transactions:
1. February 15 Issue additional shares of common stock, $30,000.
2. May
20 Provide services to customers for cash, $45,000, and on account, $40,000.
3. August 31 Pay salaries to employees for work in 2021, $33,000.
4. October
1 Purchase rental space for one year, $22,000.
5. November 17 Purchase supplies on account, $32,000.
6. December 30 Pay dividends, $3,000.
The following information is available on December 31, 2021:
1. Employees are owed an additional $5,000 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,000 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
4. Prepare an income statement, statement of stockholders' equity, and classified balance sheet.
Complete this question by entering your answers in the tabs below.
Income
Statement
Stmt of
Stockholders Balance Sheet
Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfcf1573-4098-4fdf-aa4e-888c4fa834cc%2F3407398c-b740-46e4-b039-2586f93d0039%2F9hpa8y_processed.png&w=3840&q=75)
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, $22,000; Supplies, $9,000; Land, $70,000;
Deferred Revenue, $6,000; Common Stock $60,000; and Retained Earnings, $35,000. During 2021, the company had the
following transactions:
1. February 15 Issue additional shares of common stock, $30,000.
2. May
20 Provide services to customers for cash, $45,000, and on account, $40,000.
3. August 31 Pay salaries to employees for work in 2021, $33,000.
4. October
1 Purchase rental space for one year, $22,000.
5. November 17 Purchase supplies on account, $32,000.
6. December 30 Pay dividends, $3,000.
The following information is available on December 31, 2021:
1. Employees are owed an additional $5,000 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,000 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
4. Prepare an income statement, statement of stockholders' equity, and classified balance sheet.
Complete this question by entering your answers in the tabs below.
Income
Statement
Stmt of
Stockholders Balance Sheet
Equity
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