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Requirement 1 and 2: Cash CRIMSON TIDE MUSIC ACADEMY T-Accounts Accounts Receivable Supplies Interest Receivable Prepaid Rent Land Notes Receivable Accounts Payable Salaries Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Service Revenue Interest Revenue Retained Earnings Service Revenue Interest Revenue Rent Expense Salaries Expense Utilities Expense Supplies Expense Requirement 3: Account Title Cash Accounts Receivable Interest Receivable Supplies Prepaid Rent Land Notes Receivable Accounts Payable Salaries Payable Deferred Revenue Utilities Payable Common Stock Retained Earnings Service Revenue Interest Revenue Salaries Expense Rent Expense Supplies Expense Utilities Expense Totals CRIMSON TIDE MUSIC ACADEMY Adjusted Trial Balance December 31, 2021 Debit Credit Requirement 4: Revenues: Service Interest Total revenues CRIMSON TIDE MUSIC ACADEMY Income Statement For the year ended December 31, 2021 Expenses: Salaries Rent Supplies Utilities Total expenses Net income (Loss) Balance at January 1 Issuance of common Stock Add: Net income for 2021 Less: Dividends Balance at December 31 CRIMSON TIDE MUSIC ACADEMY Statement of Stockholders' Equity For the year ended December 31, 2021 Common Stock Retained Earnings Total Stockholders' Equity CRIMSON TIDE MUSIC ACADEMY Balance Sheet December 31, 2021 Current assets: Cash Assets Accounts Receivable Interest Receivable Supplies Prepaid Rent Total current assets Long-term assets: Land Notes Receivable Total assets Liabilities Current liabilities: Accounts Payable Salaries Payable Deferred Revenue Utilities Payable Total current liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' equity Total liabilities and stockholders equity Requirement 5: CRIMSON TIDE MUSIC ACADEMY Closing Entries December 31, 2021 Entry Account (a) Service Revenue Interest Revenue Retained Earnings (Close Revenue accounts) (b) Retained Earnings Salaries Expense Rent Expense Supplies Expense Utilities Expense (Close Expense accounts) Debit Credit Requirement 6: Retained Earnings Service Revenue Interest Revenue Salaries Expense Rent Expense Supplies Expense Utilities Expense Requirement 7: CRIMSON TIDE MUSIC ACADEMY Account Title Cash Accounts Receivable Interest Receivable Supplies Prepaid Rent Land Notes Receivable Accounts Payable Salaries Payable Interest Payable Utilities Payable Common Stock Retained Earnings Totals Post-Closing Trial Balance December 31, 2021 Debit Credit CRIMSON TIDE MUSIC ACADEMY Unadjusted Trial Balance December 31, 2021 Accounts Debits Credits Cash 10,300 Accounts Receivable 9.500 Interest Receivable Supplies 2,000 Prepaid Rent 7.200 Land 78.000 Notes Receivable 20,000 Accounts Payable S 7,700 Salaries Payable Deferred Revenue 5.300 Utilities Payable Common Stook 79,000 Retained Earnings 19,700 Service Revenue 42:200 Interest Revenue Salaries Expense Rent Expense 24,500 Supplies Expense Utilities Expense 2,400 Totals 153,900 $ 153.900 Year-end Adjusting Entries: Debit Credit Salaries Expense 2.100 Salaries Payable 2,100 Interest Receivable 800 Interest Revenue 800 Supplies Expense 1.300 Supplies 1,300 Deferred Revenue 3.300 Service Revenue 3.300 Rent Expense 5.400 Prepaid Rent 5,400 Utilities Expense 200 Utilities Payable 200

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