Question

7 0 Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Part 6 of 8 Credits 0.62 points Debits $13,000 6,600 2,600 17,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals eBook $ 5,800 8,300 18,000 7,100 $39,200 Print $39,200 References The following is a summary of the transactions for the year. 1. March 12 Provide services to customers, $46,000, of which $19,600 is on account. 2. May 2 Collect on accounts receivable, $16,600. 3. June 30 Issue shares of common stock in exchange for $4,000 cash. 4. August 1 Pay salaries of $8,300 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,600. 6. October 19 Purchase equipment for $6,600 cash. 7. December 30 Pay $1,200 canh dividends to stockholders.

Answer 1

Date Credit Debit $ 46,000 General Journal December 31,2021 Service revenue a/c Income summary a/c (To record closing entry of revenue) $ 46,000 $ 11,600 December 31,2021 Income summary a/c Repairs and maintenance expense a/c (To record closing entry of expense) $ 11,600 $ 1,200 December 31, 2021 Retained earnings Dividends (To record closing entry of cash dividend) $ 1,200 Note:-- Please do positive ratings (like/thumps up). Thank you Please do comment if you have any doubts.