TRIAL BALANCE AT 1/1/18 Credit Debits $15,000 8,000 4,000 15,000 Cash Accounts R

Question

TRIAL BALANCE AT 1/1/18 Credit Debits $15,000 8,000 4,000 15,000 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Salaries Payable Deferred Revenue (also called Unearned Revenue) Common Stock Retained Earnings (remember, this is a beginning balance as of 1/1/17-you'll need to calculate ending RE for your balance $5,000 3,500 4,000 0 20,000 9,500 Totals $42,000 $42,000 The following is a summary of the transactions during the 2018 year: 1. January 11-Paid $5,000 for salaries. Of that, $4,000 was for salaries payable the prior year and the rest was for salaries in the current year. (Hint, you will have 3 accounts on this journal entry.) 2. March 9 - Provide services for customers for $15,000. Of that, $2,000 was on account and the rest was in cash. (Hint, you will have 3 accounts on this journal entry.) 3. May 6-Collect on accounts receivable, $8,000. 4. July 30-Issue shares of common stock in exchange for $15,000 cash. 5. August 25-Pay for repairs and maintenance expenses, 3,000. 6. November 24 - Receive a deposit in advance from customers, $1,000, for a boarding at a future date. 7. December 30-Pay $400 cash dividends to stockholders 8. December 31, Purchase equipment for $8,000 cash. p.l

Explanation / Answer

Date Account title and explantions Debit Credit Jan 11, 2018 Salaries payable $ 4,000 Salaries expense $ 1,000            Cash $ 5,000 (To record the payment of salaries expense of the current year and the accrued salaries of previous year) March 9, 2018 Cash $ 13,000 Accounts receivable $ 2,000           Service revenue $ 15,000 (To record the service revenue rendered) May 6, 2018 Cash $ 8,000            Accounts receivable $ 8,000 (To record the collection of cash on account) July 30, 2018 Cash $ 15,000            Common stock $ 15,000 (To record the issuance of common stock) August 25, 2018 Repairs and maintenance expense $ 3,000            Cash $ 3,000 (To record the payment for repairs and maintenance) November 24, 2018 Cash $ 1,000           Deferred revenue $ 1,000 (To record the deposit received in advance from customer) December 30, 2018 Cash dividend $ 400            Cash $ 400 (To record the payment of cash dividends to stockholders) December 31, 2018 Equipemnt $ 8,000            Cash $ 8,000 (To record the purchase of equipment for cash)

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