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