Question

Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $12,500 6,500 2,500 17,500 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 6,000 8,500 17,500 7,000 $39,000 $39,000 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $45,000, of which $19,500 is on account. 2. May 2 Collect on accounts receivable, $16,500. 3. June 30 Issue shares of common stock in exchange for $5,000 cash. 4. August 1 Pay salaries of $8,500 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,500. 6. October 19 Purchase equipment for $6,500 cash. 7. December 30 Pay $1,000 cash dividends to stockholders.

Answer 1

Accounts Title Dec31,2021 Salaries Expenses Salaries Payable Date Credit Debit $19,500 $19,500 Dec31,2021 Supplies Expenses Supplies 1,300 2500-1200 $1,300 Dec31,2021 Depreciation Expenses Accumulated Depreciation $3,500 3,500