Question

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $16.500 7,300 3,300 11,500 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 3,600 5,600 21,500 7.900 $38.600 $38.600 The following 's a summary of the transactions for the year 1. March 12 Provide services to customers, $53.000, of which $20,300 is on account. 2. May 2 Collect on accounts receivable, $17,300. 3. June 30 Issue shares of common stock in exchange for $5,000 cash. 4. August. 1 Paysalaries of $5,600 From 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $12,300. 6. October 19 Purchase equipment for $7.300 cash 7. December 30 Pay $1.000 cash dividends to stockholders.

Answer 1

Lamt in $) Journal Entrice 53000 March 12 Accounts receivable Alc. Dr 2000 Cash Alc a nd bar or 32700 To sales Alc ICBeing services provided) may 2 Cash Alc..... 17300 To Accounts receivable Ale bol (Being amount reed from debtors) is t he 17300 June 30 Cash Alc. . Don 5000 To Share capital 5000 Being stock issued for cash) Aug. I Salaries Payable Alc...br 5600 To Cash Ale 5600 il (Being prior period salary paid) Sept 25 Repairs & Maintenance Ale. Ar 12800 To Cash Ale 12300 C Being repair expenses peid) Oct 19 Equipment Alc - Tor 1300 on to cash Alca 9 7300 (Being equipment purchased)

Dec 30 Dividend Ale --do La To Cash Alchovisser (Bing dividend paid) 1000 clauan 1 den 1000 ledger Accounts nuan A Ion To Balance bld To Sules All in 17300 Accounts Receivables, Ale 7300 By cash Ale 20300 - big By Balance eld 10300 27600 27600

oor To Cash Alc To Balance old Salla vies payable ale Balance bid 5600 5600 By Salaries All 19500 $9.500 emispe mine 25400 25800

Cash All nalan To Balance blod 18500 - By Salaries payable 5600 To sales All 82700 By Repairs & maintenance 12300 To Account receivable 17300 By Equipment 7300 To Share Capital 5000 By Dividend 1000 Zoom By Balance eld 45300 71500 71500

To Balance bld Supplies Ale 3300 by Supplies expense 2300 2 By Balance bld (1000) 3300 3300 Awamulated depreciation By Balance bld 3600 1900 a By Equipment Alc 4300 7900 To Balance dd 7900

Income statement 5200 Service Revenue (latel) Less Expenses Salaries expense 19500 Igor Repairs d 'meundenandelrid 112300 Depreciation 4300 Supplies 223004 38400 er profile 0214800 less! Appropriation devisor sig soul are Dividende poid ilgque 1000 Amb transferred to Jaunos 13600 retained earnings

Trail Balance (31/10/2001) (Amin) Acounts Accounts necevable L Suipments Accomulated depreciation Salaries payable Common stock (01 500 15000) Betained earnings (1900-1960) Debil 45900 1000 1000 1A 800 1900 14500 26500 21500 75A0015400 Balance sheet as on 81|19|2091 Assets liabilities Current Assets Current liabilities cash 44 900 Sutaries prepable 19500 Accounts receivable 10200 Shareholders equite Supplies 1000 Share capital's 26,500 ccommodaferue) long term asset Equipments 18.800 Descrups 8 surplus 21500 less depreciation (1900) 10900 61500 61500