Question

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, $16,800.
3.		June		30		Issue shares of common stock in exchange for $5,000 cash.
4.		August		1		Pay salaries of $7,900 from 2020 (prior year).
5.		September		25		Pay repairs and maintenance expenses, $11,800.
6.		October		19		Purchase equipment for $6,800 cash.
7.		December		30		Pay $1,000 cash dividends to stockholders.

The following information is available for the adjusting entries.

Accrued salaries at year-end amounted to $17,900. Depreciation for the year on the equipment is $3,800. Office supplies remaining on hand at the end of the year equal $1,200.

1	March 12	Cash		19,800
		Accounts Receivable	19,800
		Service Revenue		48,000
2	May 02	Cash	16,800
		Accounts Receivable		16,800
3	June 30	Cash	5,000
		Common Stock		5,000
4	August 01	Salaries Payable	7,900
		Cash		7,900
5	September 25	Repairs and Maintenance Expense	11,800
		Cash		11,800
6	October 19	Equipment	6,800
		Cash		6,800
7	December 30	Dividends	1,000
		Cash		1,000
8	December 31	Salaries Expense	17,900
		Salaries Payable		17,900
9	December 31	Depreciation Expense	3,800
		Accumulated Depreciation		3,800
10	December 31	Supplies Expense	1,600
		Supplies		1,600
11	December 31	Service Revenue	104,400
		Retained Earnings		104,400
12	December 31	Retained Earnings
		Repairs and Maintenance Expense
13	December 31	Retained Earnings
		Dividends

Fill the missing on the Journal entry and create a balance sheet

Answer 1

Date	General Journal	Debit	Credit
Dec 31	Service Revenue	48,000
	Retained Earnings		48,000
Dec 31	Retained Earnings	35,100
	Repairs and Maintenance Expense		11,800
	Salaries Expense		17,900
	Depreciation Expense		3,800
	Supplies Expense		1,600
Dec 31	Retained Earnings	1,000
	Dividends		1,000
	Red Storm Cleaners
	Balance Sheet
	December 31, 2021
	Assets
	Cash		36,500
	Accounts Receivable		9,800
	Supplies		1,200
	Equipment	22,800
	Less: Accumulated Depreciation	9,200	13,600
	Total Assets		61,100
	Liabilities and Stockholders' Equity
	Liabilities
	Salaries Payable		17,900
	Total Liabilities		17,900
	Stockholders' Equity
	Common Stock	24,000
	Retained Earnings	19,200
	Total Stockholders' Equity		43,200
	Total Liabilities and Stockholders' Equity		61,100