Required information Problem 3-32A Comprehensive problem: single cycle LO 3-1, 3-2, 3-3, 3-4 [The following information applies to the questions displayed below.] The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $55,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $15,600 cash. Apr. 10 Purchased $840 of supplies on account. July 1 Received $21,500 cash in advance for services to be provided over the next year. 20 Paid $630 of the accounts payable from April 10. Aug. 15 Billed a customer $10,400 for services provided during August. Sept. 15 Completed a job and received $2,900 cash for services rendered. Oct. 1 Paid employee salaries of $36,000 cash. 15 Received $8,100 cash from accounts receivable. Nov. 16 Billed customers $36,000 for services rendered on account. Dec. 1 Paid a dividend of $800 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,050 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $90 was on hand at the end of the period. Cash Accounts Receivable Beg. Bal. Beg. Bal. End. Bal. End. Bal. 0 0 Prepaid Rent Supplies Beg. Bal. Beg. Bal. 0 End. Bal. 0 End. Bal. 0 Accounts Payable Unearned Revenue Beg. Bal Beg. Bal. End. Bal 0 0 ---- Required information HIMITIVO December 31, Year 1 Account Titles Debit Credit $ 55,000 55,000 X 8,450 840 x Common stock Cash Prepaid rent Accounts payable Supplies Unearned revenue Accounts receivable Accounts receivable x 15,600 X + $ Totals $ 8,450 126,440