Question

On January 1, 2018, Red Flash Photography had the following balances: Cash, $19,000; Supplies, $8,700; Land, $67,000; Deferred Revenue, $5,700; Common Stock $57,000; and Retained Earnings, $32,000. During 2018, the company had the following transactions:  

1.	February	15		Issue additional shares of common stock, $27,000.
2.	May	20		Provide services to customers for cash, $42,000, and on account, $37,000.
3.	August	31		Pay salaries to employees for work in 2018, $30,000.
4.	October	1		Purchase rental space for one year, $19,000.
5.	November	17		Purchase supplies on account, $29,000.
6.	December	30		Pay dividends, $2,700.

The following information is available on December 31, 2018:
  
1. Employees are owed an additional $4,700 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,700 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

1February 15Cash27,000Common stock27,0002May 20Cash42,000Accounts receivable37,000Service revenue79,0003August 31Salaries expense30,000Cash30,0004October 01Prepaid rent19,000Cash19,0005November 17Supplies29,000Accounts payable29,0006December 30Dividends2,700Cash2,7007December 31Salaries expense4,700Salaries payable4,7008December 31Rent expensePrepaid rent9December 31Supplies expense30,000Supplies30,00010December 31Deferred revenue5,700Service revenue5,70011December 31Service revenueRetained earnings12December 31Retained earningsSalaries expenseSupplies expenseRent expense13December 31Retained earnings2,700Dividends2,700

Answer 1