The following transactions pertain to Price Corporation for

The following transactions pertain to Price Corporation for 20xx: Jan. 1Acquired $25,000 cash from the issuance of common stock. Mar. 1 Paid rent for office space for two years, $8,400 cash. Apr. 14Purchased $400 of supplies on account. June 30Received $12,000 cash in advance for services to be performed over the next year July 5 Paid $300 of the accounts payable from April 14th Aug. 1Billed a customer for $24,800 of services provided during July. Sept. 1Paid employees salaries of $18,000 cash. Sept. 9 Received $4,250 cash from accounts receivable. Nov. 2 Paid a $500 cash dividend to the stockholders. Dec 31Adjusted records to recognize the services provided on the contract of June 30. Dec 31 Recorded $1,100 of accrued salaries as of December 31st. Dec 31Recorded the rent expense for the year. (See March 1) Dec 31 Physically counted supplies; $50 on hand at the end of the year. Using the attached Excel spreadsheet, do the following: 1. Record the preceding transactions in the general journal. 2. Post the transactions to the T-accounts 3. Prepare a trial balance. 4. Prepare closing entries and post them to the general journal and the T-accounts. 5. Prepare a trial balance after closing. (Post Closing Trial Balance)

Solution

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Date	Account Titles	Debit	Credit
1-Jan	Cash	25,000.00
	common Stock		25,000.00
	(Being Common Stock issued)
1-Mar	Prepaid Rent	8,400.00
	Cash		8,400.00
	(Being Rent Paid)
14-Apr	Supplies	400.00
	Accounts Payable		400.00
	(Being Supplies Purchased)
30-Jun	Cash	12,000.00
	Unearned Service Revenue		12,000.00
5-Jul	Accounts Payable	300.00
	Cash		300.00
	(Being Cash paid on Account Purchases)
1-Aug	Accounts Receivable	24,800.00
	Service revenue		24,800.00
	(Being Service Revenue billed)
1-Sep	Salaries and Wages Expense	18,000.00
	Cash		18,000.00
	(Bieng Salaries Recorded)
9-Sep	Cash	4,250.00
	Accounts Receivable		4,250.00
	(Being Payment received on account)
2-Nov	Dividend	500.00
	Cash		500.00