Question

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	13,000
Accounts Receivable		6,600
Supplies		2,600
Equipment		17,000
Accumulated Depreciation					$	5,800
Salaries Payable						8,300
Common Stock						18,000
Retained Earnings						7,100
Totals	$	39,200			$	39,200

The following is a summary of the transactions for the year:

1.		March		12		Provide services to customers, $46,000, of which $19,600 is on account.
2.		May		2		Collect on accounts receivable, $16,600.
3.		June		30		Issue shares of common stock in exchange for $4,000 cash.
4.		August		1		Pay salaries of $8,300 from 2020 (prior year).
5.		September		25		Pay repairs and maintenance expenses, $11,600.
6.		October		19		Purchase equipment for $6,600 cash.
7.		December		30		Pay $1,200 cash dividends to stockholders.

4. Prepare an unadjusted trial balance(Please write out).

7. Prepare an adjusted trial balance(Please write out).

8-a. Prepare the income statement for the year ended December 31, 2021 (Please Write out).

11. Prepare a post-closing trial balance.

Answer 1

Firstly we need to pass journal entries for the given transactions which are shown as follows:-

Journal Entries (Amounts in $)

Date	Account Titles	Debit	Credit
Mar 12	Accounts Receivable	19,600
	Cash (46,000-19,600)	26,400
	Service Revenue		46,000
May 2	Cash	16,600
	Accounts Receivable		16,600
June 30	Cash	4,000
	Common Stock		4,000
Aug 1	Salaries Payable	8,300
	Cash		8,300
Sep 25	Repair and Maintenance Expense	11,600
	Cash		11,600
Oct 19	Equipment	6,600
	Cash		6,600
Dec 30	Dividends	1,200
	Cash		1,200

4) Red Storm Cleaners

   Unadjusted Trial Balance (Amounts in $)

Accounts	Debits	Credits
Cash (13,000+26,400+16,600+4,000-8,300-11,600-6,600-1,200)	32,300
Accounts Receivable (6,600+19,600-16,600)	9,600
Supplies	2,600
Equipment (17,000+6,600)	23,600
Accumulated Depreciation		5,800
Common Stock (18,000+4,000)		22,000
Retained Earnings		7,100
Service Revenue		46,000
Repair and Maintenance Expense	11,600
Dividends	1,200
Totals	80,900	80,900

7) As no adjustments are given in the question, therefore adjusted trial balance and unadjusted trial balance will be same.

For the other parts I need adjustments which are not given in the question.