Required information

Exercise 3-20A Record transactions and prepare adjusting entries, adjusted trial balance, financial statements, and closing entries (LO3-3, 3-4, 3-5, 3-6, 3-7)

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[The following information applies to the questions displayed below.] On January 1, 2021, Red Flash Photography had the following balances: Cash, $25,000; Supplies, $9,300; Land, $73,000; Deferred Revenue, $6,300; Common Stock $63,000; and Retained Earnings, $38,000. During 2021, the company had the following transactions:

1.		February		15		Issue additional shares of common stock, $33,000.
2.		May		20		Provide services to customers for cash, $48,000, and on account, $43,000.
3.		August		31		Pay salaries to employees for work in 2021, $36,000.
4.		October		1		Purchase rental space for one year, $25,000.
5.		November		17		Purchase supplies on account, $35,000.
6.		December		30		Pay dividends, $3,300.

The following information is available on December 31, 2021:

1. Employees are owed an additional $5,300 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,300 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

Exercise 3-20A Part 4

4. Prepare an income statement, statement of stockholders equity, and classified balance sheet.

Required information

Exercise 3-20A Record transactions and prepare adjusting entries, adjusted trial balance, financial statements, and closing entries (LO3-3, 3-4, 3-5, 3-6, 3-7)

Skip to question

[The following information applies to the questions displayed below.] On January 1, 2021, Red Flash Photography had the following balances: Cash, $25,000; Supplies, $9,300; Land, $73,000; Deferred Revenue, $6,300; Common Stock $63,000; and Retained Earnings, $38,000. During 2021, the company had the following transactions:

1.		February		15		Issue additional shares of common stock, $33,000.
2.		May		20		Provide services to customers for cash, $48,000, and on account, $43,000.
3.		August		31		Pay salaries to employees for work in 2021, $36,000.
4.		October		1		Purchase rental space for one year, $25,000.
5.		November		17		Purchase supplies on account, $35,000.
6.		December		30		Pay dividends, $3,300.

The following information is available on December 31, 2021:

1. Employees are owed an additional $5,300 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,300 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

Exercise 3-20A Part 5

5. Prepare closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)