Question

Required:

1., 3. 6. & 10. Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts.

Problem 3-8A Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7) [The following information applies to the questions displayed below.] The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances: Accounts Debits Credits $13,000 Cash Accounts Receivable 6,600 2,600 17,000 Supplies Equipment Accumulated Depreciation Salaries Payable $ 5,800 8,300 Common Stock 18,000 Retained Earnings 7,100 $39,200 $39,200 Totals The following is a summary of the transactions for the year a. March 12 Provide services to customers, $46,000, of which $19,600 is on account. b. May 2 Collect on accounts receivable, $16,600. c. June 30 Issue shares of common stock in exchange for $4,000 cash d. August 1 Pay salaries, $24,600 (of which $8,300 is for salaries payable in 2017). e. September 25 Pay repairs and maintenance expenses, $11,600. f. October 19 Purchase equipment for $6,600 cash. g.December 30 Pay $1,200 cash dividends to stockholders h.Accrued salaries at year-end amounted to $1,200. Depreciation for the year on the equipment is $3,600. Office supplies remaining on hand at the end of the year equal $1,100. Accounts Re ceivable Cash Beg. Bal Beg. Bal. 13,000 6,600 26,400 24,600 d 16,600 b. a a. 19,600 h 16,600 11,600 e. 6,600 f. c 4,000 1,200 g. 16,000 9,600 End. Bal. End. Bal. Supplies Equipment 2.600 Beg. Bal. Beg. Bal. 17,000 1,500 6,600 1,100 End. Bal. 23,600 End. Bal. Accumulated Depreciation Salaries Payable 5,800 Beg. Bal. Beg. Bal. 8,300 3,600 d 8,300 9,400 End. Bal. End. Bal. Retained Earnings Common Stock 7,100 18,000 Beg. Bal Beg. Bal. Cl. entry 46,000 4,000 c 1,200 22.000 51.900 End. Bal. End. Bal. Service Revenue Dividends Beg. Bal. Beg. Bal 46,000 1.200 46,000 g 1.200 Cl. entry End. Bal. End. Bal. Salaries Expense R&M Expense Beg. Bal. Beg. Bal. d. e. 11,600 CI. entry 11,600 Cl. entry 1,200 2 0 End. Bal. End. Bal. Depreciation Expense Supplies Expense Beg. Bal. Beg. Bal. 3,600 Cl. entry 3,600 1,500 1,500 Cl. entry 0 End. Bal. End. Bal.

Answer 1

Cash Particulars Particulars 13,000 Salaries Expenses 26,400 Salaries Payable 16,600 R&M Expense 4,000 Dividend Equipment End.balance Amount Amount |Beg.bal Service Revenue Accounts receivable $ Common Stock $ $16,300 $ 8,300 $11,600 s $ $1,200 6,600 $16,000 $ $60,000 60,000 Common Stock Particulars 22,000 Beg.bal Particulars End.balance Amount Amount $ $18,000 Cash 4,000 $ 22,000 $22,000 Supplies Expenses Particulars 1,500 Income Statement Particulars Amount Amount |Supplies $ 1,500 $ 1,500 1,500 Supplies Particulars 2,600Supplies Expenses End.Balance Particulars Amount Amount Beg.bal $ $1,500 $1,100 $ 2,600 $ 2,600 EA EA

Service Revenue |Particulars |Income Statement $46,000 |Cash Amount Particulars Amount $26,400 Accounts receivable$19,600 $46,000 $46,000 Accounts receivable Particulars Amount Particulars 6,600 Cash $19,600 End.Balance Amount Beg.bal |Service Revenue $16,600 $9,600 $26,200 $26,200 Salaries Payable Amount Particulars Particulars Amount Cash End.Balance 8,300 Beg.bal $ 1,200 Salaries Expenses 8,300 1,200 $9,500 9,500 Depreciation Expense Amount Particulars |Acc.Depreciation | $ 3,600 |Income Statement Particulars Amount 3,600 3,600 3,600 Retained earnings Amount Particulars $ 1,200 Beg.bal Particulars Dividend |End.Balance Amount 7,100 $17,700 Net Income $11,800 $18,900 $18,900

Salaries Expenses Amount Particulars Particulars Cash Amount Net Income Calculation $16,300 Income Statement $17,500 Service Revenue $ 46,000 Salaries Payable |$ 1,200 Less Salaries Expenses R&M Expenses |Depreciation Expense Supplies Expenses Net Income $17,500 $17,500 $ 17,500 $ 11,600 R&M Expenses 3,600 Particulars Cash Amount Particulars $11,600 Income Statement Amount 1,500 $11,600 11,800 $11,600 $11,600 Dividend Particulars Cash Amount Particulars 1,200 Retained Earnings Amount $1,200 1,200 1,200 Equipment Amount Particulars |Particulars Beg.bal Amount $17,000 $ 6,600 End.Balance Cash $23,600 $23,600 $23,600 Acc.Depreciation Amount Particulars Beg.bal 9,400 Depreciation Expense | Particulars Amount 5,800 End.Balance 3,600 9,400 9,400