Question

3 O Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Part 2 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 Tsue shares of connon stock in exchange for $4,000 cash. 4. August 1 Pay salaries of $3,300 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 01,200 cash dividende to stockholders. 4. Prepare an unadjusted trial balance. RED STORM CLEANERS Unadjusted Trial Balance

Answer 1

Solution:

Red Storm Cleaners
Unadjusted Trial Balance
December 31, 2021
Accounts	Debit ($)	Credit ($)
Cash (WN 1)	32,300
Accounts Receivable (WN 2)	9,600
Supplies	2,600
Equipment (WN 3)	23,600
Accumulated Depreciation		5,800
Salaries Payable		0
Common Stock (WN 4)		22,000
Retained Earnings		7,100
Dividends	1,200
Service Revenue		46,000
Salaries expense	0
Repair and Maintenance Expense	11,600
Depreciation expense	0
Supplies expense	0
Totals	80,900	80,900

Working Notes: Journal Entries

Date	Account Titles	Debit ($)	Credit ($)
March 12	Accounts Receivable	19,600
	Cash (46,000-19,600)	26,400
	Service Revenue		46,000
May 2	Cash	16,600
	Accounts Receivable		16,600
June 30	Cash	4,000
	Common Stock		4,000
Aug 1	Salaries Payable	8,300
	Cash		8,300
Sep 25	Repair and Maintenance Expense	11,600
	Cash		11,600
Oct 19	Equipment	6,600
	Cash		6,600
Dec 30	Dividends	1,200
	Cash		1,200

1) Cash = $ 13,000+26,400+16,600+4,000-8,300-11,600-6,600-1,200 = $ 32,300

2) Accounts Receivable= $ 6,600+19,600-16,600 = $ 9,600

3) Equipment = $ 17,000+6,600 = $ 23,600

4) Common Stock = $ 18,000+4,000 = $ 22,000