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In: Accounting
The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:...
The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:
| Accounts | Debits | Credits | |||||
| Cash | $ | 13,000 | |||||
| Accounts Receivable | 6,600 | ||||||
| Supplies | 2,600 | ||||||
| Equipment | 17,000 | ||||||
| Accumulated Depreciation | $ | 5,800 | |||||
| Salaries Payable | 8,300 | ||||||
| Common Stock | 18,000 | ||||||
| Retained Earnings | 7,100 | ||||||
| Totals | $ | 39,200 | $ | 39,200 | |||
The following is a summary of the transactions for the year:
| 1. | March | 12 | Provide services to customers, $46,000, of which $19,600 is on account. | |||
| 2. | May | 2 | Collect on accounts receivable, $16,600. | |||
| 3. | June | 30 | Issue shares of common stock in exchange for $4,000 cash. | |||
| 4. | August | 1 | Pay salaries of $8,300 from 2020 (prior year). | |||
| 5. | September | 25 | Pay repairs and maintenance expenses, $11,600. | |||
| 6. | October | 19 | Purchase equipment for $6,600 cash. | |||
| 7. | December | 30 | Pay $1,200 cash dividends to stockholders. |
The following information is available for the adjusting entries.
Accrued salaries at year-end amounted to $17,500. Depreciation for the year on the equipment is $3,600. Office supplies remaining on hand at the end of the year equal $1,100.
1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 7). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. The general Journal consist of 13 entires
Solutions
Expert Solution
| 1 | Journal entries: | ||||||||
| Sl no. | Date | Account titles and explanation | Debit | Credit | |||||
| 1 | Mar 12. | Cash | 26400 | ||||||
| Accounts receivable | 19600 | ||||||||
| Service revenue | 46000 | ||||||||
| (Provide services to customers) | |||||||||
| 2 | May 2. | Cash | 16600 | ||||||
| Accounts receivable | 16600 | ||||||||
| (Collect on accounts receivable) | |||||||||
| 3 | June 30. | Cash | 4000 | ||||||
| Common stock | 4000 | ||||||||
| (Issue shares of common stock) | |||||||||
| 4 | Aug 1. | Salaries payable | 8300 | ||||||
| Cash | 8300 | ||||||||
| (Pay salaries from 2020) | |||||||||
| 5 | Sep 25. | Repairs and maintenance expenses | 11600 | ||||||
| Cash | 11600 | ||||||||
| (Pay repairs and maintenance expenses) | |||||||||
| 6 | Oct 19. | Equipment | 6600 | ||||||
| Cash | 6600 | ||||||||
| (Purchase equipment) | |||||||||
| 7 | Dec 30. | Dividends | 1200 | ||||||
| Cash | 1200 | ||||||||
| (Pay cash dividends to stockholders) | |||||||||
| General ledger: | |||||||||
| Cash | Accounts receivable | ||||||||
| Date | Debit | Date | Credit | Date | Debit | Date | Credit | ||
| Jan 1. | 13000 | Aug 1. | 8300 | Jan 1. | 6600 | May 2. | 16600 | ||
| Mar 12. | 26400 | Sep 25. | 11600 | Mar 12. | 19600 | ||||
| May 2. | 16600 | Oct 19. | 6600 | 26200 | 16600 | ||||
| June 30. | 4000 | Dec 30. | 1200 | Bal. | 9600 | ||||
| 60000 | 27700 | ||||||||
| Bal. | 32300 | ||||||||
| Supplies | Equipment | ||||||||
| Date | Debit | Date | Credit | Date | Debit | Date | Credit | ||
| Jan 1. | 2600 | Jan 1. | 17000 | ||||||
| Oct 19. | 6600 | ||||||||
| 23600 | 0 | ||||||||
| Bal. | 23600 | ||||||||
| Accumulated depreciation | Salaries payable | ||||||||
| Date | Debit | Date | Credit | Date | Debit | Date | Credit | ||
| Jan 1. | 5800 | Aug 1. | 8300 | Jan 1. | 8300 | ||||
| 8300 | 8300 | ||||||||
| Common stock | Retained earnings | ||||||||
| Date | Debit | Date | Credit | Date | Debit | Date | Credit | ||
| Jan 1. | 18000 | Jan 1. | 7100 | ||||||
| June 30. | 4000 | ||||||||
| 0 | 22000 | ||||||||
| Bal. | 22000 |
ekkarill92 answered 1 year agoRelated Solutions
The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:...
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,...
The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:...
The general ledger of Red Storm Cleaners at January 1, 2021,
includes the following account balances:
Accounts
Debits
Credits
Cash
$
13,000
Accounts Receivable
6,600
Supplies
2,600
Equipment
17,000
Accumulated Depreciation
$
5,800
Salaries Payable
8,300
Common Stock
18,000
Retained Earnings
7,100
Totals
$
39,200
$
39,200
The following is a summary of the transactions for the year:
1.
March
12
Provide services to customers, $46,000, of which $19,600 is on
account.
2.
May
2
Collect on accounts receivable,...
The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:...
The general ledger of Red Storm Cleaners at January 1, 2021,
includes the following account balances:
Accounts
Debits
Credits
Cash
$
13,000
Accounts Receivable
6,600
Supplies
2,600
Equipment
17,000
Accumulated Depreciation
$
5,800
Salaries Payable
8,300
Common Stock
18,000
Retained Earnings
7,100
Totals
$
39,200
$
39,200
The following is a summary of the transactions for the year:
1.
March
12
Provide services to customers, $46,000, of which $19,600 is on
account.
2.
May
2
Collect on accounts receivable,...
The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:...
The general ledger of Red Storm Cleaners at January 1, 2021,
includes the following account balances:
Accounts
Debits
Credits
Cash
$
14,000
Accounts Receivable
6,800
Supplies
2,800
Equipment
16,000
Accumulated Depreciation
$
5,400
Salaries Payable
7,900
Common Stock
19,000
Retained Earnings
7,300
Totals
$
39,600
$
39,600
The following is a summary of the transactions for the year:
1.
March
12
Provide services to customers, $48,000, of which $19,800 is on
account.
2.
May
2
Collect on accounts receivable,...
The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:...
The general ledger of Red Storm Cleaners at January 1, 2021,
includes the following account balances:
Accounts
Debits
Credits
Cash
$
14,000
Accounts Receivable
6,800
Supplies
2,800
Equipment
16,000
Accumulated Depreciation
$
5,400
Salaries Payable
7,900
Common Stock
19,000
Retained Earnings
7,300
Totals
$
39,600
$
39,600
The following is a summary of the transactions for the year:
1.
March
12
Provide services to customers, $48,000, of which $19,800 is on
account.
2.
May
2
Collect on accounts receivable,...
The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances:...
The general ledger of
Red Storm Cleaners at January 1, 2018, includes the following
account balances:
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
$
44,600
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,...
The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances:...
The general ledger of Red Storm Cleaners at January 1, 2018,
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:
March 12 Provide services to customers, $47,000, of which
$19,700 is on the account.
May 2 Collect on accounts...
The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances:...
The general ledger of Red Storm Cleaners at January 1, 2018,
includes the following account balances:
Accounts
Debits
Credits
Cash
$
12,000
Accounts Receivable
6,400
Supplies
2,400
Equipment
18,000
Accumulated Depreciation
$
6,200
Salaries Payable
8,700
Common Stock
17,000
Retained Earnings
6,900
Totals
$
38,800
$
38,800
The following is a summary of the transactions for the year:
March 12 Provide services to customers, $44,000, of which
$19,400 is on account.
May 2 Collect on accounts receivable,...
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:
Accounts
Debit
Credit
Cash
$
26,400
Accounts Receivable
48,800
Allowance for Uncollectible Accounts
$
5,500
Inventory
21,300
Land
59,000
Equipment
21,500
Accumulated...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts...
On January 1, 2021, the general ledger of Freedom Fireworks
includes the following account balances:
Accounts
Debit
Credit
Cash
$
101,500
Accounts
Receivable
34,600
Inventory
152,300
Land
70,300
Buildings
123,000
Allowance for
Uncollectible Accounts
$
2,100
Accumulated
Depreciation
9,900
Accounts
Payable
21,000
Bonds
Payable
123,000
Discount on
Bonds Payable
30,300
Common
Stock
203,000
Retained
Earnings
153,000
Totals
$
512,000
$
512,000
During January 2021, the following transactions occurred:
January
1
Borrowed $103,000
from Captive Credit Corporation. The installment note bears...
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