Question

On January 1, Year 1, the general ledger of a company includes the following account balances:

Accounts	Debit				Credit
Cash	$	24,400
Accounts Receivable		5,800
Supplies		3,700
Land		56,000
Accounts Payable					$	3,800
Common Stock						71,000
Retained Earnings						15,100
Totals	$	89,900			$	89,900

During Year 1, the following transactions occur:

January		2		Purchase rental space for one year in advance, $7,800 ($650/month).
January		9		Purchase additional supplies on account, $4,100.
January		13		Provide services to customers on account, $26,100.
January		17		Receive cash in advance from customers for services to be provided in the future, $4,300.
January		20		Pay cash for salaries, $12,100.
January		22		Receive cash on accounts receivable, $24,700.
January		29		Pay cash on accounts payable, $4,600.

5. Prepare a classified balance sheet as of January 31, Year 1.

Answer is not complete.

Balance Sheet January 31, Year 1 Assets Liabilities Current assets: Current liabilities: Cashselected answer correct $28,900selected answer correct Accounts Payableselected answer correct $3,300selected answer correct Accounts Receivableselected answer correct 7,200selected answer correct Deferred Revenueselected answer correct not attempted Suppliesselected answer correct 3,400selected answer correct not attempted not attempted Prepaid Rentselected answer correct 7,150selected answer correct not attempted not attempted not attempted not attempted Total current liabilities 3,300 Total current assets 46,650 Stockholder's Equity Long-term assets: Common Stockselected answer correct 71,000selected answer correct Landselected answer correct 56,000selected answer correct Retained Earningsselected answer correct not attempted not attempted not attempted not attempted not attempted not attempted not attempted Total stockholders' equity 71,000 Total assets $102,650 Total liabilities and stockholders' equity $74,300

Answer 1

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	Income Statements
	For the month ended January 31, Year 1
	Revenues
	Service revenue	26,100
	Total Revenue	26,100
	Expenses
	Rent Expenses	650
	Salaries expenses	12,100
	Total Expenses	12,750
	Net Income	13,350
	Balance Sheet
	January 31, Year 1
	Assets		Liabilities
	Current Assets		Current Liabilities
	Cash	28,900	Accounts Payable	3,300
	Accounts Receivable	7,200	Unearned revenue	4,300
	Supplies	7,800
	Prepaid rent	7,150
	Total Current Assets	51,050	Total Current Liabilities	7,600
	Long term assets		Stockholders' equity
	Land	56,000	Common Stocks	71,000
			Retained earning	28,450
			Total Stockholders' equity	99,450
	Total assets	107,050	Total Liability and Stockholders' equity	107,050
	Cash Accounts
	Particulars	Debit $	Particulars	Credit $
	Beginning Balance	24,400	Prepaid rent	7,800
	Unearned revenue	4,300	Salaries	12,100
	Accounts Receivable	24,700	Accounts Payable	4,600
			Ending Balance	28,900
	Total	53,400	Total	53,400	-