HOW TO DO NUMBER 3

Exercise 3-21 Complete the accounting cycle (LO3-3, 3-4, 3-5, 3-6)

[The following information applies to the questions displayed below.] On January 1, 2018, the general ledger of Dynamite Fireworks includes the following account balances:

Accounts	Debit			Credit
Cash	$	24,200
Accounts Receivable		5,600
Supplies		3,500
Land		54,000
Accounts Payable					3,600
Common Stock					69,000
Retained Earning					14,700
Totals	$	87,300		$	87,300

During January 2018, the following transactions occur: January 2. Purchase rental space for one year in advance, $7,200 ($600/month). January 9. Purchase additional supplies on account, $3,900. January 13. Provide services to customers on account, $25,900. January 17. Receive cash in advance from customers for services to be provided in the future, $4,100. January 20. Pay cash for salaries, $11,900. January 22. Receive cash on accounts receivable, $24,500. January 29. Pay cash on accounts payable, $4,400.

Exercise 3-21 Part 2

1. Rent for the month of January has expired. 2. Supplies remaining at the end of January total $3,200. 3. By the end of January, $3,500 of services has been provided to customers who paid in advance on January 17. 4. Unpaid salaries at the end of January are $5,520.

2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Exercise 3-21 Part 3

3. Prepare an adjusted trial balance as of January 31, 2018.

Exercise 3-21 Part 3 3. Prepare an adjusted trial balance as of January 31, 2018. DYNAMITE FIREWORKS Adjusted Trial Balance January 31, 2018 Accounts Debit Credit Cash Accounts receivable Supplies Land 54,000 Salaries payable 5,520 4,400 Accounts payable Common stock Retained earnings Deferred revenue 54,000 Totals 9,920