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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.

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.)

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

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