Accounting $5203$ 

Financial Accounting Assignment

The following information are the opening balances for Tracey Swift Limited.

Tracey Swift is a musician who sells records, merchandise and performs at concerts.

Cash $950,000$ 

Accounts Payable $40,000$ 

Accounts Receivable $125,000$ 

Retained Earnings $535,000$ 

Supplies $72,000$ 

Deferred Revenue $550,000$ 

Contributed Capital $350,000$ 

Property, Plant & Equipment $290,000$ 

Other Assets $63,000$ 

Other Liabilities $25,000$ 

 $3,000,000$ 

The following transactions or events occurred during the year:

A$.$ On December $31,2023$ Tracey Swift paid dividends to shareholders of $$150,000.$ 

B$.$ During $2023$ Tracey Swift performed numerous concerts. $$200,000$ of this concert revenue

was from tickets purchased in $2022.$ 

C$.$ Yearly insurance of $$24,000$ was paid on May $31,2023.$ It covers June $1,2023-$May $31,2024.$ 

D$.$ Tracey Swift sold $$1,200,000$ in merchandise in $2023.$  Twenty percent of this revenue remains

outstanding at December $31,2023.$ 

E$.$ Selena Gomez sold $$2,000,000$ in merchandise during $2023.$ 

F$.$ Tracey Swift paid her suppliers in full at year end.

G$.$ Salaries for the year were $$300,000$ at year end $25\%$ of this remained outstanding.

H$.$ The Company had used $$52,000$ worth of supplies throughout the year.

Required:

$1.$ Prepare journal entries for the above noted transactions

$2.$ Prepare an Income Statement, Statement of Retained Earnings and Classified Balance

sheet for the year ended December $31,2023.$

 

Answer rating: 100% (QA)

Lets first prepare the journal entries for the transactions mentioned A Dividends paid markdown Reta... View the full answer