Double Entry/Journal Entry/Accounting Cycle Problem Transactions for Roarin' Tigers for Year 1:

Jan 1 $50,000 cash was acquired in exchange for common stock.

Mar 1 $8,400 cash was paid for two years of Office Rent

Apr 14 $800 worth of supplies were purchased on account.

Jun 30 $12,000 cash was received in advance for services to be provided over the next 12 months.

Aug 1 We billed a customer $5,000 for work that we completed in July

Aug 8 $1,600 was received for work that we completed.

Sept 1 $20,000 cash was used to pay employees salaries

Sept 9 $4,250 cash was received for services that we billed for previously.

Oct 5 We billed multiple customers a total of $19,000 for services we provided.

Nov 2 Stockholders were paid $500 cash dividend.

Dec 31 Adjusted Entries that needs to be recorded as of December 31st are as follows:

1) We need to recognize the services provided that were contracted on June 30th.

2) Accrued Salaries we need to record a total of $1,100.

3) In March, we prepaid our rent, we need to recognize the rent expense for the year.

4) We physically counted supplies and come to find out, we only have $50 worth of supplies on hand, so we need to record what was used up during the year.

REQUIRED

a.) Prepare the closing entries as of December 31st.