Question

The general ledger of Zips Storage at January 1, 2018, includes the following account balances: Accounts Debits Credits Cash $ 25,300 Accounts Receivable 16,100 Prepaid Insurance 13,400 Land 155,000 Accounts Payable $ 7,400 Deferred Revenue 6,500 Common Stock 150,000 Retained Earnings 45,900 Totals $ 209,800 $ 209,800 The following is a summary of the transactions for the year: a. January 9 Provide storage services for cash, $141,100, and on account, $55,700. b. February 12 Collect on accounts receivable, $52,200. c. April 25 Receive cash in advance from customers, $13,600. d. May 6 Purchase supplies on account, $10,600. e. July 15 Pay property taxes, $9,200. f. September 10 Pay on accounts payable, $12,100. g. October 31 Pay salaries, $130,600. h. November 20 Issue shares of common stock in exchange for $34,000 cash. i. December 30 Pay $3,500 cash dividends to stockholders. The following information is available for the adjusting entries. Insurance expired during the year is $7,700. Supplies remaining on hand at the end of the year equal $3,600. Provide services of $12,500 related to cash paid in advance by customers.
Prepare the journal entries for transactions?, income statement and trial balance.

Answer 1

Answer:

Explanation:

The objective of this question is to prepare he journal entries for transactions?, income statement and trial balance.

To start with the journal entries:

Date                Account Title and Explanation    Debit   $     Credit  $

                         Cash                                           141,100  

Jan 9, 2018     Accounts Receivable                  57,000

                        Service Revenue                                              196,000

                        (To record service revenue)

Feb 12              Cash                                           52,200

                       Accounts Receivable                                         52,200

                      (To record cash collection on

                       accounts receivable )

Apr  25               Cash                                           13,600

                       Unearned Revenue                                              52,200

                      (To record cash in advance

                         from customers )

Ma 06               Supplies                                        10,600

                       Accounts Payable                                                10,600

                      (To record cash purchase of

                       supplies on account)

Jul 15              Property taxes                                 9,200

                       Cash                                                                     9,200

                      (To record payment of

                       Property taxes )

Sep 10             Account Payable                           12,100

                       Cash                                                                       12,100

                      (To record payment on

                      accounts payable)

Oct 31             Salaries   expense                         130,600

                       Cash                                                                      130,600

                       (To record salaries paid)

Nov 20            Cash                                               34,000

                        Common stock                                                      34,000

                        (To record issues of common

                        stock)

Dec   30           Dividends                                       3,500

                         Cash                                                                       3,500

                         (To record Cash dividends)

Adjusting entries:

Date               Account Title and Explanation       Debit $         Credit $

Dec 31         Supplied Expense ( $10,600 -            7000

                     $3,600)

                     Supplies                                                                  7000

                   (To record  the supplies used )

                   Insurance    Expense                          7,700

                   Prepaid Insurance                                                   7,700

                   (To record Insurance expired)

                   Unearned Revenue                             12,500

                    Service Revenue                                                    12,500

                    (To record unearned service

                     revenue)

As a result of bulkiness and wide columns for the income statement and trial balance which the text editor for typing the answer cannot contain; I've have created a word document showing the table format of the income statement and trial balance.

SEE BELOW FOR THE ATTACHED FILE.