Question

Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $19,000 7,800 3,800 14,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 4,600 6,600 24,000 9,400 $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 $20,800 is on account. 2. May 2 Collect on accounts receivable, $17,800. 3. June 30 Issue shares of common stock in exchange for $4,000 cash. 4. August 1 Pay salaries of $6,600 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $12,800. 6. October 19 Purchase equipment for $7,880 cash. 7. December 30 Pay $1,200 cash dividends to stockholders. 2. Record each of the summary transactions listed above. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list

Answer 1

Credit Date General Journal March 12 Cash (58,000 - 20,800) Accounts receivable Service revenue (to record services provided) $ $ Debit 37,200 20,800 $ 58,000 $ 17,800 May 02 Cash Accounts receivable (to record cash collected) $ 17,800 $ 4,000 June 30 Cash Common stock (to record issue of shares) $ 4,000 $ 6,600 August 01 Salaries payable Cash (to record prior year salaried paid) $ 6,600 $ 12,800 September 25 Repairs and maintenance expenses Cash (to record payment of repairs & Maintenance expenses) $ 12,800 $ 7,800 October 19 Equipment Cash (to record purchase of equipment) $ 7,800 $ 1,200 December 30 Dividends Cash (to record payment of dividends) $ 1,200

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