Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 12,000 Accounts Receivable 6,400 Supplies 2,400 Equipment 18,000 Accumulated Depreciation $ 6,200 Salaries Payable 8,700 Common Stock 17,000 Retained Earnings 6,900 Totals $ 38,800 $ 38,800 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $44,000, of which $19,400 is on account. 2. May 2 Collect on accounts receivable, $16,400. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $8,700 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,400. 6. October 19 Purchase equipment for $6,400 cash. 7. December 30 Pay $1,100 cash dividends to stockholders.
7. Prepare an adjusted trial balance.
ADJUSTED TRIAL BALANCE
PARTICULARS DEBIT CREDIT
CASH (NOTE-1) 31400
A/C RECEIVABLE (NOTE-2) 9400
SUPPLIES 2400
EQUIPMENT (NOTE-3) 24400
ACCUMILATED DEPRICIATION 6200
SALARIES PAYABLE (NOTE-4) 0
COMMON STOCK (NOTE-5) 23000
RETAINED EARNINGS(NOTE-6) 38400
TOTAL 67600 67600
NOTES TO ACCOUNTS
CASH OPENING BALANCE = 12000
CASH RECEIVED FOR SERVICE = 24600
COLLECTION OF A/C RECEIVABLE = 16400
ISSUE OF COMMON STOCK = 6000
PAYMENT OF SALARIES = (8700)
PAYMENT FOR REPAIRS = (11400)
PURCHASE OF EQUIPMENT = (6400)
PAYMENT OF DIVIDEND = (1100)
CLOSING BAL = 31400
NOTE-2 ADJUSTMENT OF A/C RECEIVABLE
A/C REceivabe opening balance = 6400
services provided on credit = 19400
a/c receivables collected = (16400)
CLOSING BAL 9400
NOTE-3 EQUIPMENT
EQUIPMENT OPENING BALANCE = 18000
PURCHASED DURING YEAR = 6400
CLOSING BAL 24400
NOTE-4 SALARIES PAYABLE
OPENING BALANCE = 8700
PAID DURING THE YEAR = (8700)
CLOSING BALANCE == 0
NOTE -5 COMMON STOCK
OPENING BALANCE = 17000
ISSUED DURING THE YEAR = 6000
CLOSING BAL 23000
NOTE- 6 RETAINED EARNINGS
OPENING BALANCE = 6900
PROFIT( REFER P&L) = 31500
CLOSING BAL = 38400
STAEMENT OF PROFIT AND LOSS ACCOUNT
TO REPAIRS = 11400 | BY SERVICE =44000 |
TO DIVIDEND = 1100 | |
TO NET PROFIT= 31500 |
NOTE: AS INFORMATION RELATED TO DEPRICIATION IS NOT SPECIFIED IN QUESTION HENCE DEPRICIATION IS NOT CHARGED
THANK YOU
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following...
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 12,000 Accounts Receivable 6,400 Supplies 2,400 Equipment 18,000 Accumulated Depreciation $ 6,200 Salaries Payable 8,700 Common Stock 17,000 Retained Earnings 6,900 Totals $ 38,800 $ 38,800 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $44,000, of which $19,400 is on account. 2. May 2 Collect on accounts...
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 12,000 Accounts Receivable 6,400 Supplies 2,400 Equipment 18,000 Accumulated Depreciation $ 6,200 Salaries Payable 8,700 Common Stock 17,000 Retained Earnings 6,900 Totals $ 38,800 $ 38,800 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $44,000, of which $19,400 is on account. 2. May 2 Collect on...
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 12,000 Accounts Receivable 6,400 Supplies 2,400 Equipment 18,000 Accumulated Depreciation $ 6,200 Salaries Payable 8,700 Common Stock 17,000 Retained Earnings 6,900 Totals $ 38,800 $ 38,800 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $44,000, of which $19,400 is on account. 2. May 2 Collect on accounts...
The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances: Accounts Debits Credits Cash $ 12,000 Accounts Receivable 6,400 Supplies 2,400 Equipment 18,000 Accumulated Depreciation $ 6,200 Salaries Payable 8,700 Common Stock 17,000 Retained Earnings 6,900 Totals $ 38,800 $ 38,800 The following is a summary of the transactions for the year: March 12 Provide services to customers, $44,000, of which $19,400 is on account. May 2 Collect on accounts receivable,...
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $ 18,500 7,700 3,700 13,500 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 4,400 6,400 23,500 9,100 $ 43,400 $43,400 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $57,000, of which $20,700 is on account. 2. May 2 Collect on accounts receivable,...
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $ 18,500 7,700 3,700 13,500 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 4,400 6,400 23,500 9,100 $ 43,400 $ 43,400 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $57,000, of which $20,700 is on account. 2. May 2 Collect on accounts...
The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $18,500 7,700 3,700 13,500 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 4,400 6,400 23,500 9,100 $ 43,400 $ 43,400 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $57,000, of which $20,700 is on account. 2. May 2 Collect on accounts receivable, $17,700. 3....
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $19,000 Accounts Receivable 7,800 Supplies 3,800 Equipment 14,000 Accumulated Depreciation $ 4,600 Salaries Payable 6,600 Common Stock 24,000 Retained Earnings 9,400 Totals $44,600 $44,600 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $58,000, of which $20,890 is on account. 2. May 2 Collect on accounts receivable, $17,800. 3....
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 10,500 Accounts Receivable 6,100 Supplies 2,100 Equipment 19,500 Accumulated Depreciation $ 6,800 Salaries Payable 9,300 Common Stock 15,500 Retained Earnings 6,600 Totals $ 38,200 $ 38,200 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $41,000, of which $19,100 is on account. 2. May 2 Collect on...
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 10,500 Accounts Receivable 6,100 Supplies 2,100 Equipment 19,500 Accumulated Depreciation $ 6,800 Salaries Payable 9,300 Common Stock 15,500 Retained Earnings 6,600 Totals $ 38,200 $ 38,200 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $41,000, of which $19,100 is on account. 2. May 2 Collect on...