Question

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

Answer 1

Entries (it is assument where nothing is mentined payment is done through bank A/c)

1. March 12 (provide services to customer of whcih $19,400 is on account)

Accounts receivable A/c Dr.. $24,600

To servies provided A/c $24,600

2. may 2 (Collect from accoungt receivable)

Bank A/c Dr.. $16,400

To Account receivable A/c $16,400

3.June 30. (Issue shares for cash(

Cash A/c Dr.. $6,000

To Shares A/c $6,000

4. Aug 4, (pay Salaries for prior year)

Salary payable A/c Dr.. $,8,700

To Bank A/c $8,700

5. Sept 25 (pay repair and maintenance)

Repair and maintenance A/c Dr.. $11,400

To Bank A/c $11,400

6. Oct 19 (purchased equipment for cash)

Equipment A/c Dr.. $6,400

To Cash A/c $6,400