In: Accounting
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:
Required:
1., 3. 6. & 10. Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts.
2. Record each of the summary transactions listed above. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
4. Prepare an unadjusted trial balance.
5. Record adjusting entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
7. Prepare an adjusted trial balance.
8-a. Prepare the income statement for the year ended December 31, 2018.
9. Record closing entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
11. Prepare a post-closing trial balance.
1., 3. 6. & 10. | Cash | Accounts receivable | |||||||
Beg. Bal. | 12000 | 24400 | Aug 1. | Beg. Bal. | 6400 | ||||
Mar 12. | 24600 | 11400 | Sep 25. | Mar 12. | 19400 | 16400 | May 2. | ||
May 2. | 16400 | 6400 | Oct 19. | 25800 | 16400 | ||||
June 30. | 6000 | 1100 | Dec 30. | Unadj. Bal. | 9400 | ||||
59000 | 43300 | ||||||||
Unadj. Bal. | 15700 | End. Bal. | 9400 | ||||||
End. Bal. | 15700 | ||||||||
Equipment | Accumulated depreciation | ||||||||
Beg. Bal. | 18000 | 6200 | Beg. Bal. | ||||||
Oct 19. | 6400 | 0 | 6200 | ||||||
24400 | 0 | 6200 | Unadj. Bal. | ||||||
Unadj. Bal. | 24400 | 3400 | Dec 31. | ||||||
0 | 9600 | ||||||||
End. Bal. | 24400 | 9600 | End. Bal. | ||||||
Salaries payable | Common stock | ||||||||
Aug 1. | 8700 | 8700 | Beg. Bal. | 17000 | Beg. Bal. | ||||
8700 | 8700 | 6000 | June 30. | ||||||
0 | Unadj. Bal. | 0 | 23000 | ||||||
1100 | Dec 31. | 23000 | Unadj. Bal. | ||||||
0 | 1100 | ||||||||
1100 | End. Bal. | 23000 | End. Bal. | ||||||
Retained earnings | Dividends | ||||||||
6900 | Beg. Bal. | Beg. Bal. | 0 | ||||||
0 | 6900 | Dec 30. | 1100 | ||||||
6900 | Unadj. Bal. | 1100 | 0 | ||||||
Unadj. Bal. | 1100 | ||||||||
6900 | End. Bal. | 1100 | Cl-4. | ||||||
Cl-4. | 1100 | 11000 | Cl-3. | End. Bal. | 0 | ||||
1100 | 17900 | ||||||||
16800 | End. Bal. | ||||||||
Service revenue | Repairs and maintenace expense | ||||||||
0 | Beg. Bal. | Beg. Bal. | 0 | ||||||
44000 | Mar 12. | Sep 25. | 11400 | ||||||
0 | 44000 | 11400 | 0 | ||||||
44000 | Unadj. Bal. | Unadj. Bal. | 11400 | ||||||
Cl-2. | 44000 | 11400 | Cl-1. | ||||||
0 | End. Bal. | End. Bal. | 0 |