On January 1, 2018, Red Flash Photography had the following balances: Cash, $13,000; Supplies, $8,100;...
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On January 1, 2018, Red Flash Photography had the following balances: Cash, $13,000; Supplies, $8,100; Land, $61,000; Deferred Revenue, $5,100; Common Stock $51,000; and Retained Earnings, $26,000. During 2018, the company had the following transactions:
1.
February
15
Issue additional shares of common stock, $21,000.
2.
May
20
Provide services to customers for cash, $36,000, and on account, $31,000.
3.
August
31
Pay salaries to employees for work in 2018, $24,000.
4.
October
1
Purchase rental space for one year, $13,000.
5.
November
17
Purchase supplies on account, $23,000.
6.
December
30
Pay dividends, $2,100.
The following information is available on December 31, 2018: 1. Employees are owed an additional $4,100 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $5,100 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed.
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