Required information
[The following information applies to the questions displayed below.]
On January 1, 2024, Red Flash Photography had the following balances: Cash, $25,000; Supplies, $9,300; Land, $73,000; Deferred Revenue, $6,300; Common Stock $63,000; and Retained Earnings, $38,000. During 2024, the company had the following transactions:
1. February 15 Issue additional shares of common stock, $33,000.
2. May 20 Provide services to customers for cash, $48,000, and on account, $43,000.
3. August 31 Pay salaries to employees for work in 2024, $36,000.
4. October 1 Purchase rental space for one year, $25,000.
5. November 17 Purchase supplies on account, $35,000.
6. December 30 Pay dividends, $3,300.
The following information is available on December 31, 2024:
1. Employees are owed an additional $5,300 in salaries.
2. Three months of the rental space have expired.
3. Supplies of $6,300 remain on hand. All other supplies have been used.
4. All of the services associated with the beginning deferred revenue have been performed.
