The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits
Cash $ 19,000
Accounts Receivable 7,800
Supplies 3,800
Equipment 14,000
Accumulated Depreciation $ 4,600
Salaries Payable 6,600
Common Stock 24,000
Retained Earnings 9,400
Totals $ 44,600 $ 44,600
The following is a summary of the transactions for the year:
1. March 12 Provide services to customers, $58,000, of which $20,800 is on account.
2. May 2 Collect on accounts receivable, $17,800.
3. June 30 Issue shares of common stock in exchange for $4,000 cash.
4. August 1 Pay salaries of $6,600 from 2020 (prior year).
5. September 25 Pay repairs and maintenance expenses, $12,800.
6. October 19 Purchase equipment for $7,800 cash.
7. December 30 Pay $1,200 cash dividends to stockholders.
Required:
1., 3. 6. & 10. Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts.
2. Record each of the summary transactions listed above. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
4. Prepare an unadjusted trial balance.
5. Record adjusting entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
7. Prepare an adjusted trial balance.
8-a. Prepare the income statement for the year ended December 31, 2018.
8-b. Prepare the classified balance sheet for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
9. Record closing entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
11. Prepare a post-closing trial balance.