The general ledger of Red Storm Cleaners at January 1, 2018, includes the follow
ID: 2334647 • Letter: T
Question
The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances:
The following is a summary of the transactions for the year:
March 12 Provide services to customers, $58,000, of which $20,800 is on account.
May 2 Collect on accounts receivable, $17,800.
June 30 Issue shares of common stock in exchange for $4,000 cash.
August 1 Pay salaries, $25,800 (of which $6,600 is for salaries payable in 2017).
September 25 Pay repairs and maintenance expenses, $12,800.
October 19 Purchase equipment for $7,800 cash.
December 30 Pay $1,200 cash dividends to stockholders.
Accrued salaries at year-end amounted to $1,200. Depreciation for the year on the equipment is $4,800. Office supplies remaining on hand at the end of the year equal $1,100.
1. Enter the unadjusted balances from the trial balance and post the adjusting entries to a T - account.
Accounts Debits Credits Cash $ 19,000 Accounts Receivable 7,800 Supplies 3,800 Equipment 14,000 Accumulated Depreciation $ 4,600 Salaries Payable 6,600 Common Stock 24,000 Retained Earnings 9,400 Totals $ 44,600 $ 44,600Explanation / Answer
Cash Date Beg bal 19000 01-Aug By salary payable 6000 12-Mar To service revenue 37200 01-Aug By salary expense 19200 02-May To accounts receivable 17800 25-Sep By Repair & Main Expense 12800 30-Jun To common stock 4000 19-Oct By equipment 7800 30-Dec By Dividend 1200 closing bal 31000 78000 78000 Accounts receivable Date Beg bal 7800 02-May By Cash 17800 12-Mar To Service revenue 20800 closing balance 10800 28600 28600 Supplies Beg bal 3800 31-Dec By supplies expense 2700 closing balance 1100 3800 3800 Equipment Beg bal 14000 closing balance 21800 19-Oct To Cash 7800 21800 21800 Accumulated depriciation closing bal 9400 Beg bal 4600 31-Dec By depriciation 4800 9400 9400 Salaries payable 01-Aug To Cash 6600 Beg bal 6600 closing bal 1200 31-Dec By salaries expense 1200 7800 7800 Common stock Beg bal 24000 TO Closing Bal 28000 30-Jun By Cash 4000 28000 28000 Dividend A/c Beg Bal 30-Dec To Cash 1200 Service revenue 31-Dec TO IncomeSummary 58000 12-Mar By Cash 37200 12-Mar By Accounts receivable 20800 58000 58000 Repair & Maintanaince Expense 25-Sep To Cash 12800 31-Dec Income Summary 12800 12800 12800 Depriciation expense 31-Dec To accumulated depriciation 4800 31-Dec By income summary 4800 4800 4800 Supplies Expense 31-Dec To Supplies 2700 31-Dec By income summary 2700 2700 2700 Salary expense 01-Aug To salary expense 19200 31-Dec By income summary 20400 31-Dec To salary payable 1200 20400 20400
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