Question

Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $ 18,500 7,700 3,700 13,500 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 4,400 6,400 23,500 9,100 $ 43,400 $43,400 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $57,000, of which $20,700 is on account. 2. May 2 Collect on accounts receivable, $17,700. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $6,400 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $12,700. 6. October 19 Purchase equipment for $7,700 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. 4. Prepare an unadjusted trial balance.

Answer 1

Answer:

RED STORM CLEANERS
Unadjusted Trial Balance
December 31,2021
Accounts	Debit	Credit
Cash	$50,600
Accounts receivable	$10,700
Supplies	$3,700
Equipment	$21,200
Accumulated depreciation		$4,400
Salaries payable		$0
Common stock		$29,500
Retained earnings		$9,100
Cash dividends	$1,100
Service revenue		$57,000
Repairs and Maintenance expense	$12,700
Depreciation expense	$0
Supplies expense	$0
Totals	$100,000	$100,000

Calculations:

Accounts	Debit	Credit
Cash	18500+36300+17700+6000-6400-12700-7700-1100
Accounts receivable	7700+20700-17700
Supplies	$3,700
Equipment	13500+7700
Accumulated depreciation		$4,400
Salaries payable		6400-6400
Common stock		23500+6000
Retained earnings		$9,100
Cash dividends	$1,100
Service revenue		$57,000
Repairs and Maintenance expense	$12,700