Question

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:

Accounts

Debits

Credits

Cash

$

14,500

Accounts Receivable

6,900

Supplies

2,900

Equipment

15,500

Accumulated Depreciation

$

5,200

Salaries Payable

7,700

Common Stock

19,500

Retained Earnings

7,400

Totals

$

39,800

$

39,800

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

1.

March

12

Provide services to customers, $49,000, of which $19,900 is on account.

2.

May

2

Collect on accounts receivable, $16,900.

3.

June

30

Issue shares of common stock in exchange for $4,000 cash.

4.

August

1

Pay salaries of $7,700 from 2020 (prior year).

5.

September

25

Pay repairs and maintenance expenses, $11,900.

6.

October

19

Purchase equipment for $6,900 cash.

7.

December

30

Pay $1,200 cash dividends to stockholders.

The following information is available for the adjusting entries.

Accrued salaries at year-end amounted to $18,400. Depreciation for the year on the equipment is $3,900. Office supplies remaining on hand at the end of the year equal $1,100.

Answer 1

since the requirement is not given assuming that it is recording the transaction and showing closing balance of ledger accounts

B amount A 1 2 journal entries 3 4 on 12th march 5 Dr cash 6 Dr accounts receivable 7 Cr service 8 9 on 2nd may 10 Dr cash 11 Cr accounts receivable 29100 19900 49000 16900 16900 12 4000 4000 13 on 30th june 14 Dr cash 15 Cr common stock in exchange 16 17 on 1st august 18 Dr salaries payable 19 Cr cash 20 21 on 25 september 22 Dr repair&mainteinance 23 Cr cash 7700 7700 11900 11900 24

A B 24 11900 11900 1200 1200 18400 25 on 19th October 26 Dr equipment 27 Cr cash 28 29 on 30th december 30 Dr dividend 31 Cr cash 32 33 Dr salaries account 34 Cr salaries payables 35 36 Dr depreciation account 37 Cr equipment 38 39 office supplies consumed 40 Dr profit/loss account 41 Cr supplies 42 18400 3900 3900 1800 1800

E F D income statement 49000 -18400 revenue (service) expenses salaries repairs & maintenance depreciation consumables - 11900 -3900 -1800 net income dividend paid add to retained earning 13000 - 1200 11800

credit 43 44 general ledger on 31 december debit 45 46 cash account 47 account receivable 48 supplies 49 equipment 50 accumulated depreciation 51 salaries payable 52 common stock 53 retained earning 54 55 total 36800 9900 1100 22400 9100 18400 23500 19200 70200 70200 56

Answer 2

cash debit 36,800 accounts receivable debit 9900 supplies debit 2900 equipment debit to 22,400 accumulated depreciation credit 5200 salaries payable credit zero common stock credit 23,500 retained earnings credit 7400 dividends debit 1200 service revenue credit 49,000 salaries expense debit zero repairs and maintenance expense debit 11,900 depreciation expense debit zero supplies expense debit zero totals debit 85,100 credit 85,100