On January 1, 2021, Red Flash Photography had the following balances: Cash, $13,000; Supplies, $8,100; Land, $61,000; Deferred Revenue, $5,100; Common Stock $51,000; and Retained Earnings, $26,000. During 2021, the company had the following transactions 1. February 15 Issue additional shares of common stock, $21,000.
2. May 20 Provide services to customers for cash, $36,000, and on account, $31,000.
3. August 31 Pay salaries to employees for work in 2018, $24,000.
4. October 1 Purchase rental space for one year, $13,000.
5. November 17 Purchase supplies on account, $23,000.
6. December 30
Pay dividends, $2,100.
The following information is available on December 31, 2021:
1. Employees are owed an additional $4,100 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,100 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
Required:
1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 6). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.
2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 7-10).
3. Review the adjusted 'Trial Balance' as of December 31, 2021.
4. Prepare an income statement for the period ended December 31, 2018, in the 'Income Statement' tab.
5. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab.
6. Record the closing entries in the 'General Journal' tab (these are shown as items 11-13).