The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $11,500 Accounts Receivable 6,300 Supplies 2,300 Equipment 18,500 Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 6,400 8,900 16,500 6,800 $38,600 $38,600 The following is a summary of the transactions for the year: 1. March 2. May 3. June 4. August 12 Provide services to customers, $43,000, of which $19,300 is on account. 2 Collect on accounts receivable, $16,300. 30 Issue shares of common stock in exchange for $4,000 cash. 1 Pay salaries of $8,900 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,300. 6. October 19 Purchase equipment for $6,300 cash. 7. December 30 Pay $1,200 cash dividends to stockholders.
The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $11,500 Accounts Receivable 6,300 Supplies 2,300 Equipment 18,500 Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 6,400 8,900 16,500 6,800 $38,600 $38,600 The following is a summary of the transactions for the year: 1. March 2. May 3. June 4. August 12 Provide services to customers, $43,000, of which $19,300 is on account. 2 Collect on accounts receivable, $16,300. 30 Issue shares of common stock in exchange for $4,000 cash. 1 Pay salaries of $8,900 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,300. 6. October 19 Purchase equipment for $6,300 cash. 7. December 30 Pay $1,200 cash dividends to stockholders.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:
Accounts
Cash
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation.
Salaries Payable
Common Stock
Retained Earnings
Totals
Debits
$11,500
6,300
2,300
18,500
1. March
2. May
3. June
Credits
$6,400
8,900
16,500
6,800
$38,600 $38,600
The following is a summary of the transactions for the year:
12 Provide services to customers, $43,000, of which $19,300 is on account.
2 Collect on accounts receivable, $16,300.
30 Issue shares of common stock in exchange for $4,000 cash.
1 Pay salaries of $8,900 from 2020 (prior year).
4. August
5. September 25 Pay repairs and maintenance expenses, $11,300.
6. October 19 Purchase equipment for $6,300 cash.
7. December 30 Pay $1,200 cash dividends to stockholders.
5. Record adjusting entries. Accrued salaries at year-end amounted to $19,700. Depreciation for the year on the equipment is $3,300.
Office supplies remaining on hand at the end of the year equal $1,100. (If no entry is required for a particular transaction/event,
select "No journal entry required" in the first account field.)
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