[The following information applies to the questions displayed below.] The follow

Question

[The following information applies to the questions displayed below.] The following transactions pertain to Smith Training Company for Year 1 Jan. 30 Established the business when it acquired $51,000 cash from the issue of common stock Feb. 1 Paid rent for office space for two years, $15,500 cash Apr. 10 Purchased $700 of supplies on account. July 1 Received $22,500 cash in advance for services to be provided over the next year 20 Paid $525 of the accounts payable from April 10. Aug. 15 Billed a customer $10,200 for services provided during August. Sept. 15 Completed a job and received $3,000 cash for services rendered Oct. 1 Paid employee salaries of $37,000 cash. 15 Received $9,100 cash from accounts receivable Nov. 16 Billed customers $38,500 for services rendered on account. Dec 1 Paid a dividend of $1,000 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,350 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $120 was on hand at the end of the period. c. Prepare a trial balance. (Round your final answers to the nearest whole dollar amount.) SMITH TRAINING COMPANY Trial Balance December 31, Year 1 Account Titles Debit Credit Cash Totals

Explanation / Answer

Firstly we need to pass journal entries which are shown as follows:-

Journal Entries (Amounts in $)

Smith Trading Company

Trial Balance

December 31, Year 1 (Amounts in $)

Working Notes:-

WN 1) Calculation of Cash Balance on Dec. 31 (Amounts in $)

Date General Journal Debit Credit Jan. 30 Cash 51,000 Common Stock 51,000 Feb. 1 Prepaid Rent 15,500 Cash 15,500 Apr. 10 Supplies 700 Accounts Payable 700 July 1 Cash 22,500 Unearned Revenue 22,500 July 20 Accounts Payable 525 Cash 525 Aug. 15 Accounts Receivable 10,200 Service Revenue 10,200 Sept. 15 Cash 3,000 Service Revenue 3,000 Oct. 1 Salaries Expense 37,000 Cash 37,000 Oct. 15 Cash 9,100 Accounts Receivable 9,100 Nov. 16 Accounts Receivable 38,500 Service Revenue 38,500 Dec. 1 Dividends 1,000 Cash 1,000 Dec. 31 Unearned Revenue ($22,500*6/12) 11,250 Service Revenue 11,250 Dec. 31 Salaries Expense 2,350 Accrued Salaries 2,350 Dec. 31 Rent Expense ($15,500/2) 7,750 Prepaid Rent 7,750 Dec. 31 Supplies Expense ($700-$120) 580 Supplies 580

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