Question

The following information applies to the questions displayed below.) The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account be Credits Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salones Payable Common Stock Retained Earnings Debits $12,500 6,500 2,500 17,500 $ 6.000 8,500 17.500 7000 Totals $39,000 $39,000 The following is a summary of the transactions for the year. a. March 12 Provide services to customers, 545,000, of which $19,500 is on account. b. May 2 Collect on accounts receivable. $16.500. June 30 issue shares of common stock in exchange for $5,000 cash d. August 1 Paysalaries, 524,500 of which $8.500 is for salaries payable in 2017) e September 25 Pay repairs and maintenance expenses. $11,500 t October 19 Purchase equipment for $6.500 cash 9. December 30 Pay 51000 cash dividends to stoccholders. h Accrued salaries at year-end amounted to $1000 Depreciation for the year on the equipment is $3.500. Office supplies remaining on hand at the end of the year equal $1200 . 1.00 points Required infor

Answer 1

Adjusting Entries:

	Date	Account title and Explanation	Debit	Credit
1	Dec 31,2018	Salaries expense	$1,000
		Salaries payable		$1,000
		[To record accrued salaries expense]
2	Dec 31,2018	Depreciation expense	$3,500
		Accumulated depreciation-equipment		$3,500
		[To record depreciation expense on equipment]
3	Dec 31,2018	Supplies expense [2,500-1,200]	$1,300
		Supplies		$1,300
		[To record supplies expense]