Thunder Cat Services specializes in training and veterinary services to household pets, such as dogs, birds, lizards, fish, horses, and of course, cats. After the first 11 months of operations in 2021, Thunder Cat has the following account balances:THUNDER CAT SERVICES Trial Balance November 30, 2021Accounts Debits CreditsCash $ 19,400Supplies 1,500Prepaid Rent 7,200Equipment 83,700Buildings 240,000Accounts Payable $ 9,800Deferred Revenue 2,000Common Stock 125,000Retained Earnings 75,500Dividends 9,000Service Revenue 264,000Salaries Expense 65,000Advertising Expense 18,200Utilities Expense 32,300Totals $476,300 $476,300The following transactions occur during December 2021:December 1–31 Throughout the month, Thunder Cat provides services to customers for cash, $27,400. (Hint: Record the entire month’s services in a single entry.)December 4 Purchase pet supplies on account, $2,900.December 8 Pay for fliers to be distributed to local residences to advertise the company’s services, $3,200.December 9 Pay for supplies purchased on December 4.December 12 Issue additional shares of common stock for cash, $5,000.December 16 Pay cash on accounts payable, $6,300.December 19 Purchase equipment with cash, $7,700.December 22 Pay utilities for December, $4,500.December 24 Receive cash from customers for services to be provided next January, $2,300.December 27 One of Thunder Cat’s trainers takes a part-time job at the zoo and earns a salary of $1,200. The zoo and Thunder Cat Services are separate companies.December 30 Pay employee salaries for the current month, $7,000.December 31 Pay dividends to stockholders, $3,000.Required:1. Record each transaction.2. Post each transaction to the appropriate T-accounts.3. Calculate the balance of each account at December 31, 2021. (Hint: Be sure to include the balance at the beginning of December in each T-account.)4. Prepare a trial balance as of December 31, 2021.
Thunder Cat Services specializes in training and veterinary services to household pets, such as dogs, birds, lizards, fish, horses, and of course, cats. After the first 11 months of operations in 2021, Thunder
Cat has the following account balances:
THUNDER CAT SERVICES
Accounts Debits Credits
Cash $ 19,400
Supplies 1,500
Prepaid Rent 7,200
Equipment 83,700
Buildings 240,000
Accounts Payable $ 9,800
Deferred Revenue 2,000
Common Stock 125,000
Retained Earnings 75,500
Dividends 9,000
Service Revenue 264,000
Salaries Expense 65,000
Advertising Expense 18,200
Utilities Expense 32,300
Totals $476,300 $476,300
The following transactions occur during December 2021:
December 1–31 Throughout the month, Thunder Cat provides services to customers for cash, $27,400. (Hint: Record the entire month’s services in a single entry.)
December 4 Purchase pet supplies on account, $2,900.
December 8 Pay for fliers to be distributed to local residences to advertise the company’s services, $3,200.
December 9 Pay for supplies purchased on December 4.
December 12 Issue additional shares of common stock for cash, $5,000.
December 16 Pay cash on accounts payable, $6,300.
December 19 Purchase equipment with cash, $7,700.
December 22 Pay utilities for December, $4,500.
December 24 Receive cash from customers for services to be provided next January, $2,300.
December 27 One of Thunder Cat’s trainers takes a part-time job at the zoo and earns a salary of $1,200. The zoo and Thunder Cat Services are separate companies.
December 30 Pay employee salaries for the current month, $7,000.
December 31 Pay dividends to stockholders, $3,000.
Required:
1. Record each transaction.
2.
3. Calculate the balance of each account at December 31, 2021. (Hint: Be sure to include the balance at the beginning of December in each T-account.)
4. Prepare a trial balance as of December 31, 2021.
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