Question

I need help for the required parts of 1-8

P3-8A The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals Debits $20,000 8,000 4,000 15,000 $ 5,000 7,500 25,000 9,500 $47.000 $47,000 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $60,000, of which $21,000 is on account. 2. May 2. Collect on accounts receivable, $18,000. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $7,500 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $13,000. 6. October 19 Purchase equipment for $8,000 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. Required: 1. Set up the necessary T-accounts and enter the beginning balances from the trial balance. In addition to the accounts shown, the company also has accounts for Dividends, Service Revenue, Salaries Expense, Repairs and Maintenance Expense, Depreciation Expense, and Supplies Expense. 2. Record each of the summary transactions listed above. 3. Post the transactions to the accounts. 4. Prepare an unadjusted trial balance. 5. Record adjusting entries. Accrued salaries at year-end amounted to $19,600. Depreciation for the year on the equipment is $5,000. Office supplies remaining on hand at the end of the year equal $1,200. 6. Post adjusting entries. 7. Prepare an adjusted trial balance. 8. Prepare an income statement for 2021 and a classified balance sheet as of December 31, 2021.

Answer 1

2	Date	General journal					Debit	Credit
	Mar 12.	Cash			(60000-21000)		39000
		Accounts receivable					21000
		Service revenue						60000
		(Services provided)
	May 2.	Cash					18000
		Accounts receivable						18000
		(Collect on accounts receivable)
	June 30.	Cash					6000
		Common stock						6000
		(Common stock issued)
	Aug 1.	Salaries payable					7500
		Cash						7500
		(Prior year salary paid)
	Sep 25.	Repairs and maintenance expense					13000
		Cash						13000
		(Paid repairs and maintenance expense)
	Oct 19.	Equipment					8000
		Cash						8000
		(Equipment purchased)
	Dec 30.	Dividends					1100
		Cash						1100
		(Dividend paid)
1 & 3.		Cash					Accounts receivable
	Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
	Bal.	20000	Aug 1.	7500		Bal.	8000	May 2.	18000
	Mar 12.	39000	Sep 25.	13000		Mar 12.	21000
	May 2.	18000	Oct 19.	8000			29000		18000
	June 30.	6000	Dec 30.	1100		Bal.	11000
		83000		29600
	Bal.	53400
		Supplies					Equipment
	Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
	Bal.	4000				Bal.	15000
						Oct 19.	8000
							23000		0
						Bal.	23000
		Accumulated depreciation					Salaries payable
	Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
			Bal.	5000		Aug 1.	7500	Bal.	7500
							7500		7500
		Common stock					Retained earnings
	Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
			Bal.	25000				Bal.	9500
			June 30.	6000
		0		31000
			Bal.	31000
		Dividends					Service revenue
	Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
	Dec 30.	1100						Mar 12.	60000
		Salaries expense				Repairs and maintenance expense
	Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit
						Sep 25.	13000
		Depreciation expense					Supplies expense
	Ref.	Debit	Ref.	Credit		Ref.	Debit	Ref.	Credit