The following transactions pertain to Chef Training Company for 2013
The following transactions pertain to Chef Training Company for 2013:
Jan. 30 Established the business when it acquired $37,500 cash from the issue of common stock.
Feb. 1 Paid rent for office space for two years, $12,000 cash.
Apr. 10 Purchased $2,650 of supplies on account.
July 1 Received $25,000 cash in advance for services to be provided over the next year.
20 Paid $900 of the accounts payable from April 10.
Aug. 15 Billed a customer $16,000 for services provided during August.
Sept. 15 Completed a job and received $9,500 cash for services rendered.
Oct. 1 Paid employee salaries of $10,000 cash.
15 Received $12,500 cash from accounts receivable.
Nov. 16 Billed customers $37,000 for services rendered on account.
Dec. 1 Paid a dividend of $18,500 cash to the stockholders.
31 Adjusted records to recognize the services provided on the contract of July 1.
31 Recorded $2,250 of accrued salaries as of December 31.
31 Recorded the rent expense for the year. (See February 1.)
31 Physically counted supplies; $240 was on hand at the end of the period.

a. Record the preceding transactions in the general journal.
b. Post the transactions to T-accounts and calculate the account balances.
c. Prepare a trial balance.
d. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows.
e. Prepare the closing entries at December 31.
f. Prepare a trial balance after the closing entries are posted.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help