Question

Required information

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

Accounts	Debits				Credits
Cash	$	10,500
Accounts Receivable		6,100
Supplies		2,100
Equipment		19,500
Accumulated Depreciation					$	6,800
Salaries Payable						9,300
Common Stock						15,500
Retained Earnings						6,600
Totals	$	38,200			$	38,200

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

1.		March		12		Provide services to customers, $41,000, of which $19,100 is on account.
2.		May		2		Collect on accounts receivable, $16,100.
3.		June		30		Issue shares of common stock in exchange for $6,000 cash.
4.		August		1		Pay salaries of $9,300 from 2020 (prior year).
5.		September		25		Pay repairs and maintenance expenses, $11,100.
6.		October		19		Purchase equipment for $6,100 cash.
7.		December		30		Pay $1,100 cash dividends to stockholders.

1., 3., 6., & 10. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.

Answer 1

Cash					Accounts Receivable
Beg Bal	$   10,500.00				Beg Bal	$      6,100.00
Mar-12	$   21,900.00	$      9,300.00	Aug-01		Mar-12	$   19,100.00	$ 16,100.00	May-02
May-02	$   16,100.00	$   11,100.00	Sep-25
Jun-30	$      6,000.00	$      6,100.00	Oct-19
		$      1,100.00	Dec-30
End Bal	$   26,900.00
					End Bal	$      9,100.00
Supplies					Equipment
Beg Bal	$      2,100.00				Beg Bal	$   19,500.00
					Oct-19	$      6,100.00
End Bal	$      2,100.00				End Bal	$   25,600.00
Accumulated Depreciation					Salaries Payable
		$      6,800.00	Beg Bal				$   9,300.00	Beg Bal
					Aug-01	$      9,300.00
		$      6,800.00	End Bal				$                -	End Bal
Common Stock					Retained Earnings
		$   15,500.00	Beg Bal				$   6,600.00	Beg Bal
		$      6,000.00	Jun-30
		$   21,500.00	End Bal				$   6,600.00	End Bal
Dividend					Service Revenue
Beg Bal								Beg Bal
Dec-30	$      1,100.00						$ 41,000.00	Mar-12
End Bal	$      1,100.00						$ 41,000.00	End Bal
Repair and Maintenance Expense
Beg Bal
Sep-25	$   11,100.00
End Bal	$   11,100.00

Since data for adjusting entries is not provided, only summary transactions have been posted to ledger accounts