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

Retained earnings = opening balance + net income - dividend paid