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December 30 Pay $1,100 cas 11. Prepare a post-closing trial balance. 2 7.

December 30 Pay $1,100 cas 11. Prepare a post-closing trial balance. 2 7.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Debits Credits The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Cash 20,000 Accounts 8,000 Receivable Supplies 4,000 Equipment 15,000 Accounts Accumulated $ 5,000 Cash Depreciation Salaries Accounts Receivable 7,500 Payable Supplies Common 25,000 Equipment Stock Retained Earnings Totals $ 47,000 9,500 $ 47,000 Answer is complete but not entirely correct. RED STORM CLEANERS Accumulated Depreciation Salaries Payable The following is a summary of the transactions for the year: Provide services to customers, $60,000, of which $21,000 is on account. Common Stock Retained Earnings Dividends Service Revenue 1. March 12 2 May 2 Collect on accounts receivable, $18,000. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $7,500 from 2020 (prior year). 5. September 25 6. October Pay repairs and maintenance expenses, $13,000. Purchase equipment for $8,000 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. 11. Prepare a post-closing trial balance. Post-Closing Trial Balance December 31, 2021 Debit Credit $ 34,900 11,000 1,200 23,000 $ 10,000 1,100x 31,000 9,500 1,100 × 60,000 × Salaries Expense 19,600 Repairs and Maintenance Expense × 13,000 Depreciation Expense 5,000 Supplies Expense 2,800x Totals $ 111,600 $ 111,600
Transcribed Image Text:Debits Credits The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Cash 20,000 Accounts 8,000 Receivable Supplies 4,000 Equipment 15,000 Accounts Accumulated $ 5,000 Cash Depreciation Salaries Accounts Receivable 7,500 Payable Supplies Common 25,000 Equipment Stock Retained Earnings Totals $ 47,000 9,500 $ 47,000 Answer is complete but not entirely correct. RED STORM CLEANERS Accumulated Depreciation Salaries Payable The following is a summary of the transactions for the year: Provide services to customers, $60,000, of which $21,000 is on account. Common Stock Retained Earnings Dividends Service Revenue 1. March 12 2 May 2 Collect on accounts receivable, $18,000. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $7,500 from 2020 (prior year). 5. September 25 6. October Pay repairs and maintenance expenses, $13,000. Purchase equipment for $8,000 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. 11. Prepare a post-closing trial balance. Post-Closing Trial Balance December 31, 2021 Debit Credit $ 34,900 11,000 1,200 23,000 $ 10,000 1,100x 31,000 9,500 1,100 × 60,000 × Salaries Expense 19,600 Repairs and Maintenance Expense × 13,000 Depreciation Expense 5,000 Supplies Expense 2,800x Totals $ 111,600 $ 111,600
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