Question

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, $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.

Answer 1

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