The general ledger of Red Storm Cleaners at January 1, 2024, includes the following account balances: Accounts Cash Debits $20,000 Credits 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: 1. March 12 2. May 2 3. June 30 4. August 1 5. September 25 6. October 19 7. December 30 Required: Provide services to customers, $60,000, of which $21,000 is on account. Collect on accounts receivable, $18,000. Issue shares of common stock in exchange for $6,000 cash. Pay salaries of $7,500 from 2023 (prior year). Pay repairs and maintenance expenses, $13,000. Purchase equipment for $8,000 cash. Pay $1,100 cash dividends to stockholders. 2. Record each of the summary transactions listed above.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The general ledger of Red Storm Cleaners at January 1, 2024, includes the following account balances:
Accounts
Cash
Debits
$20,000
Credits
Accounts Receivable
8,000
Supplies
4,000
Equipment
15,000
Accumulated Depreciation
$5,000
Salaries Payable
7,500
Common Stock
25,000
Retained Earnings
Totals
$47,000
9,500
$47,000
The following is a summary of the transactions for the year:
1. March 12
2. May 2
3. June 30
4. August 1
5. September 25
6. October 19
7. December 30
Required:
Provide services to customers, $60,000, of which $21,000 is on account.
Collect on accounts receivable, $18,000.
Issue shares of common stock in exchange for $6,000 cash.
Pay salaries of $7,500 from 2023 (prior year).
Pay repairs and maintenance expenses, $13,000.
Purchase equipment for $8,000 cash.
Pay $1,100 cash dividends to stockholders.
2. Record each of the summary transactions listed above.
4. Prepare an unadjusted trial balance.
5. Record adjusting entries. Accrued salaries at year-end amounted to $19,600. Depreciation for the year on the equipment is $5,000.
Office supplies remaining on hand at the end of the year equal $1,200.
7. Prepare an adjusted trial balance.
8-a. Prepare the income statement for the year ended December 31, 2024.
8-b. Prepare the classified balance sheet for the year ended December 31, 2024.
9. Record closing entries.
1., 3., 6., & 10. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.
11. Prepare a post-closing trial balance.
Complete this question by entering your answers in the tabs below.
Req 2
Req 4
Req 5
Req 7
Req 8A
Req 8B
Req 9
Req 1 and 3
and 6 and
10
Req 11
Prepare an unadjusted trial balance.
Accounts
Cash
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation
Salaries Payable
Common Stock
Retained Earnings
Dividends
Service Revenue
RED STORM CLEANERS
Unadjusted Trial Balance
December 31, 2024
Debit
Credit
Salaries Expense
Repairs and Maintenance Expense
Depreciation Expense
Supplies Expense
Totals
$
0
0
< Req 2
Req 5 >
Transcribed Image Text:The general ledger of Red Storm Cleaners at January 1, 2024, includes the following account balances: Accounts Cash Debits $20,000 Credits Accounts Receivable 8,000 Supplies 4,000 Equipment 15,000 Accumulated Depreciation $5,000 Salaries Payable 7,500 Common Stock 25,000 Retained Earnings Totals $47,000 9,500 $47,000 The following is a summary of the transactions for the year: 1. March 12 2. May 2 3. June 30 4. August 1 5. September 25 6. October 19 7. December 30 Required: Provide services to customers, $60,000, of which $21,000 is on account. Collect on accounts receivable, $18,000. Issue shares of common stock in exchange for $6,000 cash. Pay salaries of $7,500 from 2023 (prior year). Pay repairs and maintenance expenses, $13,000. Purchase equipment for $8,000 cash. Pay $1,100 cash dividends to stockholders. 2. Record each of the summary transactions listed above. 4. Prepare an unadjusted trial balance. 5. Record adjusting entries. Accrued salaries at year-end amounted to $19,600. Depreciation for the year on the equipment is $5,000. Office supplies remaining on hand at the end of the year equal $1,200. 7. Prepare an adjusted trial balance. 8-a. Prepare the income statement for the year ended December 31, 2024. 8-b. Prepare the classified balance sheet for the year ended December 31, 2024. 9. Record closing entries. 1., 3., 6., & 10. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances. 11. Prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Req 2 Req 4 Req 5 Req 7 Req 8A Req 8B Req 9 Req 1 and 3 and 6 and 10 Req 11 Prepare an unadjusted trial balance. Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Dividends Service Revenue RED STORM CLEANERS Unadjusted Trial Balance December 31, 2024 Debit Credit Salaries Expense Repairs and Maintenance Expense Depreciation Expense Supplies Expense Totals $ 0 0 < Req 2 Req 5 >
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