For the Month Ended January 31,2015 Date Title Account and Description Debit Credit 1 Cash 20,000 Common Stock 20000 To record shares issued. 2 Cash 35,000 Account Receivable 30,000 Service Revenue 65,000 To record service provided 3 Salaries expense 23,000 Cash 23,000 To record salaries payment 4 Prepaid rent 12,000 Cash 12,000 To record one year preapid rent 5 Supplies 22,000 Account Payable 22,000 To record supplies purcahsed on account 6 Dividends 2,000 Cash 2,000 To record dividends paid
Red Flash Photography
Adjusting entries For the Month Ended January 31,2015 Date Title Account and Description Debit Credit 1 Salaries expense 4,000 Salaries Payable 4000 To record accrued salaries 2 Rent expense 3,000 Preapid Rent 3,000 To adjust rent expired 3 Supplies expense 25,000 Supplies 25,000 To record supplies expense 4 Deferred revenue 5,000 Service revenue 5,000 To adjust revenue earned
Red Flash Photography
Closing Entries For the Period Ended December 31,2015 Date Title Account and Description Debit Credit 1 Service Revnue 70,000 Income summary 70,000 To close revenue account 2 Income Summary 55,000 Rent Expense 3,000 Salaries Expense 27,000 Supplies Expense 25,000 To close expense accounts 3 Income Summary 15,000 Retained Earning 15,000 To adjust net income to R/E 4 Retained Earnings 2,000 Dividends 2000 To adjust dividends to R/E Cash Transaction Balance Debit Credit Debit Credit Beginning balance 12,000 Common Stock 20,000 32,000 Service Revenue 35,000 67,000 Salaries expense 23,000 44,000 Dividends 2,000 42,000 Preapid rent 12,000 30,000
Debit Credit Debit Credit Cash 35,000 35,000 Account receivable 30,000 65,000 Red Flash Photography Trial Balance For the Month Ended January 31,2015 Debit Credit Cash 30,000 Account Receivable 30,000 Supplies 30,000 Preapid Rent 12,000 Account Pyabale 22,000 Common Stock 70,000 Service Revenue 65,000 Unearned Revenue 5,000 Retained Earnings 25,000 Dividends 2,000 Salaries Expense 23,000 Land 60,000
187,000 187,000
Red Flash Photography
Adjusted Trail Balance For the Month Ended December 31,2015 Debit Credit Cash 30,000 Account Receivable 30,000 Supplies 5,000 Prepaid Rent 9,000 Account Pyabale 22,000 Common Stock 70,000 Service Revenue 70,000 Rent Expense 3,000 Retained Earnings 25,000 Dividends 2,000 Salaries Expense 27,000 Land 60,000 Supplies expense 25,000 Salaries Payable 4,000 Total 191,000 191,000 Red Flash Photography Income Statement For the Period Ended December 31,2015 Service revenue 70,000 Less: Expenses Rent Expense 3,000 Salaries Expense 27,000 Supplies Expense 25,000 Total Expenses 55,000 Net Income 15,000
Red Flash Photography
Statement Of Retained Earnings For the Period Ended December 31,2015 Beginning balance Jan 1,2015 25,000 Add Net Income 15,000 40,000 Less Dividends 2,000 Ending Balance dec 31,2015 38,000
Common stock Retained earnings Total stockholders equity
Balance at January 1 54000 29000 83000 Additions 20000 0 20000 Net income 0 15,000 15000 Dividends 0 2,000 2000 Balance at dec 31 74000 42000 116000 Balance sheet Assets Liabilities and Equity Current Assets Current Liabilities Cash 30,000 Account payable 22,000 Account Receivable 30,000 Salaries Payable 4,000 Supplies 5,000 Total Current Liabilities 26,000 Prepaid Rent 9,000 Equity Total Current Assets 74,000 Common Stock 70,000 Long term Assets Retained Earnings 38,000 Land 60,000 Total Equity 108,000 Total Assets 134,000 Total Liabilities and Equity 134,000 Red Flash Photography General Journal Entries For the Month Ended January 31,2015 Date Title Account and Description Debit Credit 1 Cash 24,000 Common Stock 24000 To record shares issued. 2 Cash 39,000 Account Receivable 34,000 Service Revenue 73,000 To record service provided 3 Salaries expense 27,000 Cash 27,000 To record salaries payment 4 Prepaid rent 16,000 Cash 16,000 To record one year preapid rent 5 Supplies 26,000 Account Payable 26,000 To record supplies purcahsed on account 6 Dividends 2,400 Cash 2,400 To record dividends paid
Red Flash Photography
Adjusting entries For the Month Ended January 31,2015 Date Title Account and Description Debit Credit 1 Salaries expense 4,400 Salaries Payable 4400 To record accrued salaries 2 Rent expense 4,000 Preapid Rent 4,000 To adjust rent expired 3 Supplies expense 29,000 Supplies 29,000 To record supplies expense 4 Unearned revenue 5,400 Service revenue 5,400 To adjust revenue earned
Red Flash Photography
Closing Entries For the Period Ended December 31,2015 Date Title Account and Description Debit Credit 1 Service Revnue 78,400 Income summary 78,400 To close revenue account 2 Income Summary 64,400 Rent Expense 4,000 Salaries Expense 31,400 Supplies Expense 29,000 To close expense accounts 3 Income Summary 14,000 Retained Earning 14,000 To adjust net income to R/E 4 Retained Earnings 2,400 Dividends 2000 To adjust dividends to R/E Cash Transaction Balance Debit Credit Debit Credit Beginning balance 16,000 Common Stock 24,000 40,000 Service Revenue 39,000 79,000 Salaries expense 27,000 52,000 Dividends 2,400 49,600 Preapid rent 16,000 33,600
Debit Credit Debit Credit Cash 39,000 39,000 Account receivable 34,000 73,000 Red Flash Photography Trial Balance For the Month Ended January 31,2015 Debit Credit Cash 33,600 Account Receivable 34,000 Supplies 34,400 Preapid Rent 16,000 Account Pyabale 26,000 Common Stock 78,000 Service Revenue 73,000 Unearned Revenue 5,400 Retained Earnings 29,000 Dividends 2,400 Salaries Expense 27,000 Land 64,000
211,400 211,400
Red Flash Photography
Adjusted Trail Balance For the Month Ended December 31,2015 Debit Credit Cash 33,600 Account Receivable 34,000 Supplies 5,400 Prepaid Rent 12,000 Account Pyabale 26,000 Common Stock 78,000 Service Revenue 78,400 Rent Expense 4,000 Retained Earnings 29,000 Dividends 2,400 Salaries Expense 31,400 Land 64,000 Supplies expense 29,000 Salaries Payable 4,400 Total 215,800 215,800 Red Flash Photography Income Statement For the Period Ended December 31,2015 Service revenue 78,400 Less: Expenses Rent Expense 4,000 Salaries Expense 31,400 Supplies Expense 29,000 Total Expenses 64,400 Net Income 14,000
Red Flash Photography
Statement Of Retained Earnings For the Period Ended December 31,2015 Beginning balance Jan 1,2015 29,000 Add Net Income 14,000 43,000 Less Dividends 2,400 Ending Balance dec 31,2015 40,600
Common stock Retained earnings Total stockholders equity
Balance at January 1 54000 29000 83000 Additions 24000 0 24000 Net income 0 14,000 14000 Dividends 0 2,400 2400 Balance at dec 31 78000 40600 118600 Balance sheet Assets Liabilities and Equity Current Assets Current Liabilities Cash 33,600 Account payable 26,000 Account Receivable 34,000 Salaries Payable 4,400 Supplies 5,400 Total Current Liabilities 30,400 Prepaid Rent 12,000 Equity Total Current Assets 85,000 Common Stock 78,000 Long term Assets Retained Earnings 40,600 Land 64,000 Total Equity 118,600 Total Assets 149,000 Total Liabilities and Equity 149,000