Reference no: EM132649155
Question - Make an income statement, statement of stockholders' equity, and classified balance sheet.
On January 1, 2021, Red Flash Photography had the following balances: Cash, $22,000; Supplies, $9,000; Land, $70,000; Deferred Revenue, $6,000; Common Stock $60,000; and Retained Earnings, $35,000. During 2021, the company had the following transactions:
1. February 15 Issue additional shares of common stock, $30,000.
2. May 20 Provide services to customers for cash, $45,000, and on account, $40,000.
3. August 31 Pay salaries to employees for work in 2021, $33,000.
4. October 1 Purchase rental space for one year, $22,000.
5. November 17 Purchase supplies on account, $32,000.6. December 30 Pay dividends, $3,000.
The following information is available on December 31, 2021:
1. Employees are owed an additional $5,000 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,000 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
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