Question

The following transactions pertain to Smith Training Company for Year 1: Jan.30 Established the business when it acquired $54,000 cash from the issue of common stock.Feb.1 Paid rent for office space for two years, $15,100 cash.Apr.10 Purchased $760 of supplies on account.July1 Received $26,000 cash in advance for services to be provided over the next year. 20 Paid $570 of the accounts payable from April 10.Aug.15 Billed a customer $9,200 for services provided during August.Sept.15 Completed a job and received $2,600 cash for services rendered.Oct.1 Paid employee salaries of $33,000 cash. 15 Received $7,900 cash from accounts receivable.Nov.16 Billed customers $31,500 for services rendered on account.Dec.1 Paid a dividend of $600 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,150 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $80 was on hand at the end of the period.

a. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar amount.)

b. Prepare a post-closing trial balance for Year 1. (Round your final answers to the nearest whole dollar amount.)

Answer 1

Date	Particulars	Debit($)	Credit($)
30-Jan	Cash A/c	54000
	To Common Stock		54000
Feb-01	Prepaid rent	15100
	To Cash		15100
Apr-10	Supplies	760
	To Accounts payable		760
Jul-01	Cash	26000
	Unearned Revenue		26000
Jul-20	Accounts Payable	570
	To Cash		570
Aug-15	Accounts receivable	9200
	To Service income		9200
Sep-15	Cash	2600
	To Service Income		2600
Oct-01	Salaries A/c	33000
	To Cash A/c		33000
Oct-15	Cash	7900
	To Accounts Receivable		7900
16-Nov	Accounts Receivable	31500
	To Service Income		31500
Dec-01	Dividend	600
	To Cash		600
Dec-31	Unearned revenue	6500
	To Service revenue		6500
Dec-31	Salaries	2150
	Salaries payable		2150
Dec-31	Rent	7550
	To Prepaid rent		7550

Trial Balance
Particulars	Debit($)	Credit($)
Service Income		49800
Common stock		54000
Salaries Payable		2150
Accounts payable		190
Unearned revenue		19500
Supplies	760
Accounts receivable	32800
Prepaid Rent	7550
Rent	7550
Cash	41230
Salaries	35150
Dividend	600
Total	125640	125640