The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances:
| Accounts |
Debits |
Credits |
| Cash |
$20,000 |
|
| Accounts Receivable |
8,000 |
|
| Supplies |
4,000 |
|
| Equipment |
15,000 |
|
| Accumulated Depreciation |
|
$5,000 |
| Salaries Payable |
|
7,500 |
| Common Stock |
|
25,000 |
| Retained Earnings |
|
9,500 |
| Totals |
$47,000 |
$47,000 |
|
|
|
|
The following is a summary of the transactions for the year:
- March 12 Provide services to customers, $60,000, of which $21,000 is on account.
- May 2 Collect on accounts receivable, $18,000.
- June 30 Issue shares of common stock in exchange for $6,000 cash.
- August 1 Pay salaries, $26,000 (of which $7,500 is for salaries payable in 2017).
- September 25 Pay repairs and maintenance expenses, $13,000.
- October 19 Purchase equipment for $8,000 cash.
- December 30 Pay $1,100 cash dividends to stockholders.
- Accrued salaries at year-end amounted to $1,100. Depreciation for the year on the equipment is $5,000. Office supplies remaining on hand at the end of the year equal $1,200.
References Section BreakProblem 3-8A Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7) 8. value:
1.00 points Required information
Problem 3
Required:
1. 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.
2. Record each of the summary transactions listed above. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
4. Prepare an unadjusted trial balance.
5. Record adjusting entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
1.00 points Required information
7. Prepare an adjusted trial balance.
8-a. Prepare the income statement for the year ended December 31, 2018.
8-b. Prepare the classified balance sheet for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
9. Record closing entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
Prepare a post-closing trial balance.