Question

Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $19,000 Accounts Receivable 7,800 Supplies 3,800 Equipment 14,000 Accumulated Depreciation $ 4,600 Salaries Payable 6,600 Common Stock 24,000 Retained Earnings 9,400 Totals $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 $20,890 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 $7,800 cash. 7. December 30 Pay $1,200 cash dividends to stockholders. 7. Prepare an adjusted trial balance. RED STORM CLEANERS Adjusted Trial Balance

Answer 1

Adjusted Trial Balance As on 31st Dec 2021

Accounts	Debit ($)	Credit ($)
Cash	49,600
Accounts receivable	10,800
Supplies	3,800
Equipment	21,800
Accumulated depreciation		4,600
Salaries payable		-
Common stock		28,000
Retained earnings		9,400
Dividends	1,200
Service revenue		58,000
Service expenses	-
Repairs and maintenance	12,800
Depreciation	-
Supplies expenses	-
Total	1,00,000	1,00,000

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