Question

11:02 + Expert Q&A + The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $18,500 Accounts Receivable 7,700 Supplies 3,700 Equipment 13,500 Accumulated Depreciation $4,400 Salaries Payable 6,400 Common Stock 23,500 Retained Earnings 9,100 Totals $43,400 $43,400 The following is a summary of the transactions for the year Provide services to customers, 1. March 12$57,000, of which $20,700 is on account. Collect on accounts receivable, 2. May 2 $17,700. 3.June anIssue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $6,400 from 2020 (prior year) 5. September 25 Pay repairs and maintenance expenses, $12,700. 6.October 19 Purchase equipment for $7,700 cash. 7.December 30 2o Pay $1,100 cash dividends to stockholders. find unadjusted Trial balance .. Record adjusting entries. Accrued salaries at year-end amounted to $19,600. Depreciation for the year on the equipment is $4,700. Office supplies remaining on hand at the end of the year equal $1,200. - Prepare an adjusted trial balance - Prepare the income statement for the year ended December 31, 2021. - Record closing entries. - Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances. - Prepare a post-closing trial balance.

Answer 1

Solution:

1	General Journal
	Date	Particulars			Dr.		Cr.
	12-Mar	Cash A/c                                     Dr.			20,700
		Account Receivable A/c       Dr.			36,300
		To Service Revenue A/c					57,000
	02-May	Cash A/c			17,700
		To Account Receivable					17,700
	30-Jun	Cash A/c			6,000		6,000
		To Common Stock
	01-Aug	Salaries A/c			6,400
		To Cash A/c					6,400
	25-Sep	Repairs & Mainenance A/c			12,700
		To Cash A/c					12,700
	19-Oct	Equipment A/c			7,700
		To Cash A/c					7,700
	30-Dec	Retained Earnings A/c			1,100
		To Dividend Payable					1,100
	30-Dec	Dividend Payable A/c			1,100
		To Cash A/c					1,100
					109,700		109,700
2	Unadjusted Trial Balance
		Accounts Name			Debit		Credit
		Cash			35,000
		Account Receivable			26,300
		Supplies			3,700
		Equipment			21,200
		Accumulative Dep.					4,400
		Common Stock					29,500
		Retained Earnings					8,000
		Repairs & Maintenance			12,700
		Service Revenue					57,000
					98,900		98900
3	Adjustment Entries
	Date	Particulars			Debit		Credit
		Salaries A/c			19,600
		To Salary Payable A/c					19,600
		Depreciation A/c			4,700
		To Acc. Depreciation					4,700
		Supplies Expense A/c			2,500
		To Supplies A/c					2,500
					26,800		26800
4	Adjusted Trial Balance
		Accounts Name			Debit		Credit
		Cash			35,000
		Account Receivable			26,300
		Supplies			1,200
		Supplies Expense			2,500
		Equipment			21,200
		Accumulative Dep.					9,100
		Depreciation			4,700
		Salary Payable					19,600
		Salary Expense			19,600
		Common Stock					29,500
		Retained Earnings					8,000
		Repairs & Maintenance			12,700
		Service Revenue					57,000
					123,200		123,200
5	Income Statement
		Revenue			$		$
		Service Revenue			57,000		57,000
		Expense
		Supplies Expense			2,500
		Depreciation			4,700
		Salary Expense			19,600
		Repairs & Maintenance			12,700		39,500
		Net Income					17,500
6	Closing Entries
	Date	Particulars			Debit		Credit
		Service Revenue A/c             Dr.			57,000
		To Income Statement					57,000
		Income Statement A/c          Dr.			39,500
		To Supplies Expense					2,500
		To Depreciation					4,700
		To Salary Expense					19,600
		To Repairs & Maintenance					12,700
		Income Statement A/c         Dr.			17,500
		To Retained Earnings					17,500
					114,000		114,000
7	Post Closing Trial Balance
		Accounts Name			Debit		Credit
		Cash			35,000
		Account Receivable			26,300
		Supplies			1,200
		Equipment			21,200
		Accumulative Dep.					9,100
		Salary Payable					19,600
		Common Stock					29,500
		Retained Earnings					25,500
					83,700		83,700