Reference no: EM133106096
Question - The following transactions pertain to Smith Training Company for Year 1:
January 30 Established the business when it acquired $54,000 cash from the issue of common stock.
February 1 Paid rent for office space for two years, $16,600 cash.
April 10 Purchased $770 of supplies on account.
July 1 Received $28,500 cash in advance for services to be provided over the next year.
July 20 Paid $578 of the accounts payable from April 10.
August 15 Billed a customer $10,000 for services provided during August.
September 15 Completed a job and received $3,300 cash for services rendered.
October 1 Paid employee salaries of $33,500 cash.
October 15 Received $7,800 cash from accounts receivable.
November 16 Billed customers $40,000 for services rendered on account.
December 1 Paid a dividend of $1,000 cash to the stockholders.
December 31 Adjusted records to recognize the services provided on the contract of July 1.
December 31 Recorded $2,200 of accrued salaries as of December 31.
December 31 Recorded the rent expense for the year. (See February 1.)
December 31 Physically counted supplies; $150 was on hand at the end of the period.
Required -
1. Prepare a statement of cash flows for Year 1.
2. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts.
3. Prepare a post-closing trial balance for December 31, Year 1.