Question

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	13,500
Accounts Receivable		6,700
Supplies		2,700
Equipment		16,500
Accumulated Depreciation					$	5,600
Salaries Payable						8,100
Common Stock						18,500
Retained Earnings						7,200
Totals	$	39,400			$	39,400

The following is a summary of the transactions for the year:

1.		March		12		Provide services to customers, $47,000, of which $19,700 is on account.
2.		May		2		Collect on accounts receivable, $16,700.
3.		June		30		Issue shares of common stock in exchange for $6,000 cash.
4.		August		1		Pay salaries of $8,100 from 2020 (prior year).
5.		September		25		Pay repairs and maintenance expenses, $11,700.
6.		October		19		Purchase equipment for $6,700 cash.
7.		December		30		Pay $1,100 cash dividends to stockholders.

The following information is available for the adjusting entries.

Accrued salaries at year-end amounted to $17,700. Depreciation for the year on the equipment is $3,700. Office supplies remaining on hand at the end of the year equal $1,000.

My answer:

1	March 12	Cash	27,300
		Accounts Receivable	19,700
		Service Revenue		47,000
2	May 02	Cash	16,700
		Accounts Receivable		16,700
3	June 30	Cash	6,000
		Common Stock		6,000
4	August 01	Salaries Payable	8,100
		Cash		8,100
5	September 25	Repairs and Maintenance Expense	11,700
		Cash		11,700
6	October 19	Equipment	6,700
		Cash		6,700
7	December 30	Dividends	1,100
		Cash		1,100
8	December 31	Salaries Expense	17,700
		Salaries Payable		17,700
9	December 31	Depreciation Expense	3,700
		Accumulated Depreciation		3,700
10	December 31	Supplies Expense	1,700
		Supplies		1,700
11	December 31	Service Revenue	47,000
		Retained Earnings		47,000
12	December 31	Retained Earnings	34,800
		Salaries Expense		17,700
		Repairs and Maintenance Expense		11,700
		Depreciation Expense		3,700
		Supplies Expense		1,700
13	December 31	Retained Earnings	1,100
		Dividends		1,100

What am I missing?

Answer 1

General Journal
	Date	Particulars	Dr.	Cr.
	1-Mar	Cash A/c                                     Dr.	27300
		Account Receivable A/c       Dr.	19700
		To Service Revenue A/c		47,000
	02-May	Cash A/c	16,700
		To Account Receivable		16,700
	3-Jun	Cash A/c	6,000	6,000
		To Common Stock
	4-Aug	Salaries A/c	8100
		To Cash A/c		8100
	5-Sep	Repairs & Mainenance A/c	11,700
		To Cash A/c		11,700
	6-Oct	Equipment A/c	6,700
		To Cash A/c		6,700
	7-Dec	Retained Earnings A/c	1,100
		To Dividend Payable		1,100
	7-Dec	Dividend Payable A/c	1,100
		To Cash A/c		1,100
			98400	98400

Adjustment Entries
	Date	Particulars	Debit	Credit
		Salaries A/c	17700
		To Salary Payable A/c		17700
		Depreciation A/c	3,700
		To Acc. Depreciation		3,700
		Supplies Expense A/c	1700
		To Supplies A/c		1700
			23100	23100

Closing Entries
	Date	Particulars	Debit	Credit
		Service Revenue A/c             Dr.	47,000
		To Income Statement		47,000
		Income Statement A/c          Dr.	34,800
		To Supplies Expense		1700
		To Depreciation		3,700
		To Salary Expense		17700
		To Repairs & Maintenance		11,700
		Income Statement A/c         Dr.	12200
		To Retained Earnings		12200
			94000	94000