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 balances:

   

Accounts	Debits			Credits
Cash	$	13,500
Accounts Receivable		6,700
Supplies		2,700
Equipment		16,500
Accumulated Depreciation				$	5,600
Salaries Payable					8,100
Common Stock					18,500
Retained Earnings					7,200
Totals	$	39,400		$	39,400

   

The following is a summary of the transactions for the year:

1. March 12 Provide services to customers, $47,000, of which $19,700 is on account.

2. May 2 Collect on accounts receivable, $16,700.

3. June 30 Issue shares of common stock in exchange for $6,000 cash.

4. August 1 Pay salaries, $24,700 (of which $8,100 is for salaries payable in 2017).

5. September 25 Pay repairs and maintenance expenses, $11,700.

6. October 19 Purchase equipment for $6,700 cash.

7. December 30 Pay $1,100 cash dividends to stockholders.

8. Accrued salaries at year-end amounted to $1,100. Depreciation for the year on the equipment is $3,700. Office supplies remaining on hand at the end of the year equal $1,000.

rev: 09_12_2016_QC_CS-60711

 1.

value:
6.25 points

Required information

 

Required:

1., 3. 6. & 10. Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts.

 

 

rev: 09_24_2018_QC_CS-139970

References

eBook & Resources

Financial StatementsLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.

Learning Objective: 03-03 Demonstrate the purposes and recording of adjusting entries.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Check my work

 

 2.

value:
6.25 points

Required information

 

2. Record each of the summary transactions listed above. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

 

 

References

eBook & Resources

General JournalLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.

Learning Objective: 03-03 Demonstrate the purposes and recording of adjusting entries.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Check my work

 

 3.

value:
6.25 points

Required information

 

4. Prepare an unadjusted trial balance.

 

References

eBook & Resources

Financial StatementsLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.

Learning Objective: 03-03 Demonstrate the purposes and recording of adjusting entries.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Check my work

 

 4.

value:
6.25 points

Required information

 

5. Record adjusting entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

 

rev: 09_12_2016_QC_CS-60711

References

eBook & Resources

General JournalLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.

Learning Objective: 03-03 Demonstrate the purposes and recording of adjusting entries.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Check my work

 

 5.

value:
6.25 points

Required information

 

7. Prepare an adjusted trial balance.

 

References

eBook & Resources

Financial StatementsLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.

Learning Objective: 03-03 Demonstrate the purposes and recording of adjusting entries.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Check my work

 

 6.

value:
6.25 points

Required information

 

8-a. Prepare the income statement for the year ended December 31, 2018.

 

   

 

8-b. Prepare the classified balance sheet for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

 

References

eBook & Resources

Financial StatementsLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.

Learning Objective: 03-03 Demonstrate the purposes and recording of adjusting entries.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Check my work

 

 7.

value:
6.25 points

Required information

 

9. Record closing entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

 

rev: 06_03_2016_QC_CS-52927

References

eBook & Resources

General JournalLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.

Learning Objective: 03-03 Demonstrate the purposes and recording of adjusting entries.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Check my work

 

 8.

value:
6.25 points

Required information

 

11. Prepare a post-closing trial balance.

 

References

eBook & Resources

Financial StatementsLearning Objective: 03-04 Post adjusting entries and prepare an adjusted trial balance.Learning Objective: 03-07 Post closing entries and prepare a post-closing trial balance.

Difficulty: 3 HardLearning Objective: 03-05 Prepare financial statements using the adjusted trial balance.

Learning Objective: 03-03 Demonstrate the purposes and recording of adjusting entries.Learning Objective: 03-06 Demonstrate the purposes and recording of closing entries.

Check my work