Question

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	13,000
Accounts Receivable		6,600
Supplies		2,600
Equipment		17,000
Accumulated Depreciation					$	5,800
Salaries Payable						8,300
Common Stock						18,000
Retained Earnings						7,100
Totals	$	39,200			$	39,200

The following is a summary of the transactions for the year:

1.		March		12		Provide services to customers, $46,000, of which $19,600 is on account.
2.		May		2		Collect on accounts receivable, $16,600.
3.		June		30		Issue shares of common stock in exchange for $4,000 cash.
4.		August		1		Pay salaries of $8,300 from 2020 (prior year).
5.		September		25		Pay repairs and maintenance expenses, $11,600.
6.		October		19		Purchase equipment for $6,600 cash.
7.		December		30		Pay $1,200 cash dividends to stockholders.

Journal Entries

1	March 12	Cashselected answer correct	26,400selected answer correct	not attempted
		Accounts Receivableselected answer correct	19,600selected answer correct	not attempted
		Service Revenueselected answer correct	not attempted	46,000selected answer correct
2	May 02	Cashselected answer correct	16,600selected answer correct	not attempted
		Accounts Receivableselected answer correct	not attempted	16,600selected answer correct
3	June 30	Cashselected answer correct	4,000selected answer correct	not attempted
		Common Stockselected answer correct	not attempted	4,000selected answer correct
4	August 01	Salaries Payableselected answer correct	8,300selected answer correct	not attempted
		Cashselected answer correct	not attempted	8,300selected answer correct
5	September 25	Repairs and Maintenance Expenseselected answer correct	11,600selected answer correct	not attempted
		Cashselected answer correct	not attempted	11,600selected answer correct
6	October 19	Equipmentselected answer correct	6,600selected answer correct	not attempted
		Cashselected answer correct	not attempted	6,600selected answer correct
7	December 30	Dividendsselected answer correct	1,200selected answer correct	not attempted
		Cashselected answer correct	not attempted	1,200

Unadjusted Trial Balance

RED STORM CLEANERS Unadjusted Trial Balance December 31, 2021 Accounts Debit Credit Cash $32,300 Accounts Receivable 9,600 Supplies 2,600 Equipment 23,600 Accumulated Depreciation $5,800 Salaries Payable Common Stock 22,000 Retained Earnings 7,100 Dividends 1,200 Service Revenue 46,000 Salaries Expense Repairs and Maintenance Expense 11,600 Depreciation Expense Supplies Expense Totals $80,900 $80,900

Adjusting Entries

No	Date	General Journal	Debit	Credit
1	December 31, 2021	Salaries Expense	19,700
		Salaries Payable		19,700
2	December 31, 2021	Depreciation Expense	3,600
		Accumulated Depreciation		3,600
3	December 31, 2021	Supplies Expense	1,100
		Supplies		1,100

Closing Entries (I was not completely sure on this one. It will need to be finished. It is possible with info provided)

No	Date	General Journal	Debit	Credit
1	December 31, 2021		46,000
		Accounts Receivable		46,000
2	December 31, 2021		34,200
		Salaries Expense		17,500
		Depreciation Expense		3,600
		Supplies Expense		1,500
		Repairs and Maintenance Expense		11,600
3	December 31, 2021	Retained Earnings	1,200
		Dividends		1,200

6. Prepare an adjusted trial balance(please write out)

7-a. Prepare the income statement for the year ended December 31, 2021.​​​​​​ (Please write out)

8. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances (Please Write Out).

11. Prepare a post-closing trial balance(Please write out).

Answer 1

		6
RED STORM CLEANERS
Adjusted Trial Balance
31-Dec-21
Accounts	Debit	Credit
Cash	$          32,300
Accounts Receivable	$            9,600
Supplies	$            1,500
Equipment	$          23,600
Accumulated Depreciation		$                                                         9,400
Salaries Payable		$                                                       19,700
Common Stock		$                                                       22,000
Retained Earnings		$                                                         7,100
Dividends	$            1,200
Service Revenue		$                                                       46,000
Salaries Expense	$          19,700
Repairs and Maintenance Expense	$          11,600
Depreciation Expense	$            3,600
Supplies Expense	$            1,100
Totals	$        104,200	$                                                     104,200

7a
INCOME STATEMENT
FOR THE YEAR 2021
PARTICULARS	AMOUNT
Service Revenue	$   46,000
Net revenue	$   46,000
Expenses:
Salaries Expense	$   19,700
Repairs and Maintenance Expense	$   11,600
Depreciation Expense	$      3,600
Supplies Expense	$      1,100
Total expenses	$   36,000
Net Income	$   10,000
Dividends declared	($1,200)
Profit after dividends	$      8,800

No	Date	General Journal	Debit	Credit
1	31-Dec-21	Income	$ 46,000
		Accounts Receivable		$ 46,000
2	31-Dec-21	Income	$ 36,000
		Salaries Expense		$ 19,700
		Depreciation Expense		$ 11,600
		Supplies Expense		$    3,600
		Repairs and Maintenance Expense		$    1,100
3	31-Dec-21	Retained Earnings	$    1,200
		Dividends		$    1,200

8

CASH
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
OPENING BALANCE	$          13,000	Salaries Payable	$          8,300
Service Revenue	$          26,400	Repairs and Maintenance Expense	$        11,600
Accounts Receivable	$          16,600	EQUIPEMENT	$          6,600
CASH	$            4,000	DIVIDENDS	$          1,200
		CLOSING BALANCE	$        32,300
	$          60,000		$        60,000
Service Revenue
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
Income	$          46,000	CASH	$        26,400
		Accounts Receivable	$        19,600
	$          46,000		$        46,000
Accounts Receivable
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
OPENING BALANCE	$            6,600	CASH	$        16,600
Service Revenue	$          19,600	CLOSING BALANCE	$          9,600
	$          26,200		$        26,200
Common Stock
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CLOSING BALANCE	$          22,000	OPENING BALANCE	$        18,000
		CASH	$          4,000
	$          22,000		$        22,000
Salaries Payable
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CASH	$            8,300	OPENING BALANCE	$          8,300
CLOSING BALANCE	$          19,700	SALARY EXPENSE	$        19,700
	$          28,000		$        28,000
SALARY EXPENSE
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
SALARY EXPENSE	$          19,700	Income	$        19,700
Repairs and Maintenance Expense
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CASH	$          11,600	Income	$        19,700
EQUIPMENT
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
OPENING BALANCE	$          17,000
CASH	$            6,600	CLOSING BALANCE	$        23,600
	$          23,600		$        23,600
DIVIDENDS
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
CASH	$            1,200	RETAINED EARNINGS	$          1,200
DEPRECIATION EXPENSE
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
Accumulated Depreciation	$            3,600	Income	$          3,600
Accumulated Depreciation
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
		OPENING BALANCE	$          5,800
closing balance	$            9,400	DEPRECIATION EXPENSE	$          3,600
	$            9,400		$          9,400
SUPPLIES EXPENSE
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
SUPPLIES	$            1,100	income	$          1,100
SUPPLIES
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
OPENING BALANCE	$            2,600	SUPPLIES EXPENSE	$          1,100
		closing balance	$          1,500
	$            2,600		$          2,600
RETAINED EARNINGS
PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
dividends	$            1,200	OPENING BALANCE	$          7,100
	$          15,900	INCOME	$        10,000
	$          17,100		$        17,100

11

11
RED STORM CLEANERS
Post closing trial balance
31-Dec-21
Accounts	Debit	Credit
Cash	$ 32,300
Accounts Receivable	$    9,600
Supplies	$    1,500
Equipment	$ 23,600
Accumulated Depreciation		$    9,400
Common Stock		$ 22,000
Retained Earnings		$ 15,900
Salaries Payable		$ 19,700
Totals	$ 67,000	$ 67,000