The following events apply to Paradise Vacations’s first year of operations:
Acquired $29,000 cash from the issue of common stock on January 1, Year 1.
Purchased $1,250 of supplies on account.
Paid $5,280 cash in advance for a one-year lease on office space.
Earned $37,350 of revenue on account.
Incurred $13,850 of other operating expenses on account.
Collected $28,500 cash from accounts receivable.
Paid $9,450 cash on accounts payable.
Paid a $3,900 cash dividend to the stockholders.
Information for Adjusting Entries
There was $240 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 $4,500 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.