Question

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $19,500 7,900 3,900 14,500 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 4,800 6,800 24,500 9,700 $45,800 $45,800 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $59,000, of which $20,900 is on account. 2. May 2 Collect on accounts receivable, $17,900. 3. June 30 Issue shares of common stock in exchange for $5,000 cash. 4. August 1 Pay salaries of $6,800 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $12,900. 6. October 19 Purchase equipment for $7,900 cash. 7. December 30 Pay $1,000 cash dividends to stockholders. The following information is available for the adjusting entries. Accrued salaries at year-end amounted to $20,100. Depreciation for the year on the equipment is $4,900. Office supplies remaining on hand at the end of the year equal $1,000.

1. Prepare the journal entries for transaction.

a. Record the providing of services to customers, $59,000, of which $20,900 is on account.

b. Record the collection on accounts receivable, 17,900.

c. Record the issuance of common stock in exchange for $5,000 cash.

d. Record the payment of salaries of $6,800 from 2020 (prior year).

e. Record the payment for repairs and maintenance expenses, $12,900.

f. Record the purchase of equipment for $7,900 cash.

i. Record the payment of $1,000 for cash dividends to stockholders.

j. Record the adjusting entry for salaries.

k. Record the adjusting entry for depreciation.

l. Record the adjusting entry for supplies remaining on hand at the end of the year equal to $1,000.

m. Record the closing entry for revenue.

n. Record the closing entry for expenses.

o. Record the closing entry for cash dividends.

3. Income Statement: Unadjusted, adjusted, post-closing

4. Balance Sheet: Unadjusted, adjusted, post-closing

Answer 1

Credit ($) 2 3 Debit ($) $ 38,100 $ 20,900 $ 59,000 7 $ 17,900 $ 17,900 10 $ 5,000 $ 5,000 12 Α Journal Entries Date Account Titles 12-Mar Cash Accounts Receivable Service Revenue (To record services provided) 2-May Cash Accounts Receivable (To record cash received) 30-Jun Cash Common Stock (To record common stock issued) 1-Aug Salaries Payable Cash (To record accrued salaries paid) 25-Sep (Repairs and Maintenane Expense Cash (To record repairs paid) 19-Oct Equipment Cash (To record equipment purchased) 30-Dec Dividends Cash (To record dividends paid) 13 6,800 14 $ 6,800 $ 12,900 $ 12,900 19 $ 7,900 $ 7,900 22 $ 1,000 $ 1,000 Credit ($) Debit ($) $ 20,100 29 $ 20,100 Adjusting Journal Entries Date Account Titles 28 31-Dec Salaries Expense Salaries Payable (To record salaries accrued) 31 31-Dec Depreciation Expense Accumulated Depreciation (To record depreciation expense) 31-Dec Supplies Expense Supplies (To record supplies used) $ 4,900 $ 4,900 $ 2,900 $ 2,900 Credit ($) Debit ($) $ 59,000 $ 59,000 $ 40,800 Closing Journal Entries Date Account Titles 41 31-Dec Service Revenue Income Summary (To close revenue accounts) 31-Dec Income Summary Repairs and Maintenance Expense Salaries Expense Depreciation Expense Supplies Expense (To close expense accounts) 31-Dec Income Summary Retained Earnings (To close net income) 31-Dec Retained Earnings Dividends (To close dividends account) $ 12,900 $ 20,100 $ 4,900 $ 2,900 $ 18,200 $ 18,200 $ 1,000 $ 1,000

K Adjustments Debit ($) Credit ($) $ 2,900 Ν ο Post Closing Trial Balance Debit ($) Credit ($) $ 51,900 $ 10,900 $ 1,000 $ 22,400 $ 9,700 $ 20,100 $ 29,500 $ 26,900 Red Storm Cleaners December 31, 2021 Account Titles 4 Cash 5 Accounts Receivable 6 Supplies 7 Equipment 8 Accumulated Depreciation 9 Salaries Payable 10 Common Stock 11 Retained Earnings 12 Dividends 13 Service Revenue 14 Repairs and Maintenance Expense 15 Salaries Expense 16 Depreciation Expense 17 Supplies Expense 18 19 Total Unadjusted Trial Balance Debit ($) Credit ($) $ 51,900 $ 10,900 $ 3,900 $ 22,400 $ 4,800 $ - $ 29,500 $ 9,700 $ 1.000 $ 59,000 $ 12,900 $ 4.900 $ 20,100 LM Adjusted Trial Balance Debit ($) Credit ($) $ 51,900 $ 10,900 $ 1,000 $ 22,400 $ 9,700 $ 20,100 $ 29,500 $ 9,700 $ 1,000 $ 59,000 $ 12.900 $ 20,100 $ 4,900 $ 2.900 $ 20,100 $ 4,900 $ 2.900 $ 103,000 $ 103,000 $ 27,900 $ 27,900 $ 128,000 $ 128,000 $ 86,200 $ 86.200

Z ГАА Adjusted RS Red Storm Cleaners Income Statement for the year ended December 31, 2021 Unadjusted 5 Service Revenue $ 59,000 6 Less: Expenses 7 Repairs and Maintenace $ 12,900 8 Salaries Expense 9 Depreciation Expense 10 Supplies Expense 11 Total Expenses $ 12,900 12 Net Income $ 46,100 $ 51,900 $ 10,900 $ 1,000 $ 63,800 SUV 1 W X Y Red Storm Cleaners Balance Sheet December 31,2021 Adjusted Unadjusted $ 59,000 Assets Current Assets $ 12.900 Cash $ 51,900 $ 20,100 Accounts Receivable $ 10,900 $ 4,900 Supplies $ 3,900 $ 2,900 Total Current Assets $ 66,700 $ 40,800 Property, Plant and Equipment $ 18,200 Equipment $ 22,400 Less: Accumulated Depreciation $ 4,800 $ 17,600 Total Assets $ 84,300 Liabilities and Stockholder's Equity Current Liabilities Adjusted Salaries Payable $ 9,700 $ 18,200 Stockholder's Equity $ 27,900 Common Stock $ 29.500 $ 1,000 Retained Earnings $ 54,800 $ 26,900 Total Stockholder's Equity $ 84,300 Total Liabilities and Stockholder's Equity $ 84,300 $ 22,400 $ 9,700 $ 12,700 $ 76,500 $ 20,100 Red Storm Cleaners Statement of Retained Earnings for the year ended December 31, 2021 Unadjusted 19 Retained Earnings, January 1, 2021 $ 9,700 20 Add: Net Income $ 46,100 $ 55,800 22 Less: Dividends $ 1,000 23 Retianed Earnings, December 31, 2021 $ 54,800 $ 29.500 $ 26,900 $ 56,400 $ 76,500 24 25

If you have any doubts ask in comments section

Do rate the answer