Question

On January 1, 2021, Red Flash Photography had the following balances: Cash, $30,000; Supplies, $9,800; Land, $78,000; Deferred Revenue, $6,800; Common Stock $68,000; and Retained Earnings, $43,000. During 2021, the company had the following transactions:

Create income statement and Balance sheet

1.		February		15		Issue additional shares of common stock, $38,000.
2.		May		20		Provide services to customers for cash, $53,000, and on account, $48,000.
3.		August		31		Pay salaries to employees for work in 2021, $41,000.
4.		October		1		Paid for one year's rent in advance, $30,000.
5.		November		17		Purchase supplies on account, $40,000.
6.		December		30		Pay dividends, $3,800.

The following information is available on December 31, 2021:

1. Employees are owed an additional $5,800 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,800 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

1	Feb 15	Cashselected answer correct	38,000selected answer correct	not attempted
		Common Stockselected answer correct	not attempted	38,000selected answer correct
2	May 20	Cashselected answer correct	53,000selected answer correct	not attempted
		Accounts Receivableselected answer correct	48,000selected answer correct	not attempted
		Service Revenueselected answer correct	not attempted	101,000selected answer correct
3	Aug 31	Salaries Expenseselected answer correct	41,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	41,000selected answer correct
4	Oct 01	Prepaid Rentselected answer correct	30,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	30,000selected answer correct
5	Nov 17	Suppliesselected answer correct	40,000selected answer correct	not attempted
		Accounts Payableselected answer correct	not attempted	40,000selected answer correct
6	Dec 30	Dividendsselected answer correct	3,800selected answer correct	not attempted
		Cashselected answer correct	not attempted	3,800selected answer correct
7	Dec 31	Salaries Expenseselected answer correct	5,800selected answer correct	not attempted
		Salaries Payableselected answer correct	not attempted	5,800selected answer correct
8	Dec 31	Rent Expenseselected answer correct	7,500selected answer correct	not attempted
		Prepaid Rentselected answer correct	not attempted	7,500selected answer correct
9	Dec 31	Supplies Expenseselected answer correct	43,000selected answer correct	not attempted
		Suppliesselected answer correct	not attempted	43,000selected answer correct
10	Dec 31	Deferred Revenueselected answer correct	6,800selected answer correct	not attempted
		Service Revenueselected answer correct	not attempted	6,800selected answer correct
11	Dec 31	Service Revenueselected answer correct	not attempted	not attempted
		Retained Earningsselected answer correct	not attempted	not attempted
12	Dec 31	Retained Earningsselected answer correct	97,300selected answer correct	not attempted
		Salaries Expenseselected answer correct	not attempted	46,800selected answer correct
		Rent Expenseselected answer correct	not attempted	7,500selected answer correct
		Supplies Expenseselected answer correct	not attempted	43,000selected answer correct
13	Dec 31	Retained Earningsselected answer correct	3,800selected answer correct	not attempted
		Dividendsselected answer correct	not attempted	3,800

Answer 1