Question

On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:

Accounts	Debit				Credit
Cash	$	24,900
Accounts Receivable		6,300
Supplies		4,200
Land		61,000
Accounts Payable					$	4,300
Common Stock						76,000
Retained Earnings						16,100
Totals	$	96,400			$	96,400

During January 2021, the following transactions occur:

January		2		Purchase rental space for one year in advance, $9,300 ($775/month).
January		9		Purchase additional supplies on account, $4,600.
January		13		Provide services to customers on account, $26,600.
January		17		Receive cash in advance from customers for services to be provided in the future, $4,800.
January		20		Pay cash for salaries, $12,600.
January		22		Receive cash on accounts receivable, $25,200.
January		29		Pay cash on accounts payable, $5,100.

The following information is available on January 31.

• Rent for the month of January has expired.
• Supplies remaining at the end of January total $3,900.
• By the end of January, $4,025 of services has been provided to customers who paid in advance on January 17.
• Unpaid salaries at the end of January are $5,030.

Record the purchase of rental space for one year in advance, $9,300 ($775/month).

Record the purchase of additional supplies on account, $4,600.

Record the providing of services to customers on account, $26,600.

Record the receipt of cash in advance from customers for services to be provided in the future, $4,800.

Record the payment of cash for salaries, $12,600.

Record the receipt of cash on accounts receivable, $25,200.

Record the payment of cash on accounts payable, $5,100.

Record the adjusting entry for rent. Rent for the month of January has expired.

Record the adjusting entry for supplies. Supplies remaining at the end of January total $3,900.

Record the adjusting entry for services provided to customers who paid in advance. By the end of January, $4,025 of services has been provided to customers who paid in advance on January 17.

Record the adjusting entry for salaries payable. Unpaid salaries at the end of January are $5,030.

Record the entry to close the revenue accounts.

Record the entry to close the expense accounts.

Answer 1

	Account Titles	Debit	Credit
Jan. 2	Prepaid Rent	$             9,300
	Cash		$             9,300
Jan. 9	Supplies	$             4,600
	Accounts Payable		$             4,600
Jan. 13	Accounts Receivable	$           26,600
	Service Revenue		$           26,600
Jan. 17	Cash	$             4,800
	Unearned Revenue		$             4,800
Jan. 20	Salaries Expense	$           12,600
	Cash		$           12,600
Jan. 22	Cash	$           25,200
	Accounts Receivable		$           25,200
Jan. 29	Accounts Payable	$             5,100
	Cash		$             5,100
Jan. 31 a	Rent Expense	$                 775
	Prepaid Rent		$                 775
Jan. 31 b	Supplies Expense	$             4,900
	Supplies		$             4,900
Jan. 31 c	Unearned Revenue	$             4,025
	Service Revenue		$             4,025
Jan. 31 d	Salaries Expense	$             5,030
	Salaries Payable		$             5,030
Jan . 31	Service Revenue	$           30,625
	Retained Earnings		$           30,625
Jan. 31	Retained Earnings	$           23,305
	Salaries Expense		$           17,630
	Rent Expense		$                 775
	Supplies Expense		$             4,900