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The following events apply to Paradise Vacationss first year of operations:
Acquired $30,000 cash from the issue of common stock on January 1, Year 1.
Purchased $1,300 of supplies on account.
Paid $5,400 cash in advance for a one-year lease on office space.
Earned $38,350 of revenue on account.
Incurred $14,000 of other operating expenses on account.
Collected $29,000 cash from accounts receivable.
Paid $9,500 cash on accounts payable.
Paid a $4,000 cash dividend to the stockholders.
Information for Adjusting Entries
There was $250 of supplies on hand at the end of the accounting period.
The lease on the office space covered a one-year period beginning November 1.
There was $4,600 of accrued salaries at the end of the period.
Required
a. Record these transactions in general journal form.
b. Post the transaction data from the journal to ledger T-accounts.
c. Prepare a trial balance.
d-1. Prepare an income statement.
d-2. Prepare a statement of changes in stockholders equity.
d-3. Prepare a balance sheet.
d-4. Prepare a statement of cash flows.
Prepare a statement of changes in stockholders equity.
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| | | PARADISE VACATIONS | | Statement of Changes in Stockholders Equity | | For the Year ended December 31, Year 1 | | Beginning common stock | $30,000selected answer incorrect | | | not attempted | 0selected answer incorrect | | | Ending common stock | | $30,000 | | Beginning retained earnings | $0selected answer correct | | | Add: Net incomeselected answer correct | 17,800selected answer correct | | | Less: Dividendsselected answer correct | 4,000selected answer correct | | | Ending retained earnings | | 13,800 | | Total stockholders equity | | $43,800 | |
Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.)
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| | | PARADISE VACATIONS | | Statement of Cash Flows | | For the Year ended December 31, Year 1 | | Cash flows from operating activities | | | | not attempted | not attempted | | | not attempted | not attempted | | | not attempted | not attempted | | | Net cash flow from operating activities | | $0 | | Cash flows from investing activities | | not attempted | | Cash flows from financing activities | | | | not attempted | not attempted | | | not attempted | not attempted | | | not attempted | not attempted | | | Net cash flow from financing activities | | 0 | | Net change in cash | | 0 | | not attempted | | not attempted | | Ending cash balance | | $0 | |
Answer & Explanation
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