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. 7. Prepare an adjusted 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
Supplies expense
Totals	$100,000	$100,000

Calculations:

T-Accounts:

Cash			Salaries payable
$18,500	$6,400		$6,400	$6,400
$36,300	$12,700			$0
$17,700	$7,700
$6,000	$1,100		Common stock
				$23,500
Bal. $50,600				$6,000
				Bal. $29,500
Accounts receivable
$7,700	$17,700		Retained earnings
$20,700				$9,100
Bal. $10,700
			Cash dividends
Supplies			$1,100
$3,700
			Service revenue
Equipment				$57,000
$13,500
$7,700			Repairs and Maintenance expense
Bal. $21,200			$12,700
Accumulated depreciation
	$4,400