Question
In: Accounting
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, $16,400.
- June 30 Issue shares of common stock in exchange for $6,000 cash.
- August 1 Pay salaries, $24,400 (of which $8,700 is for salaries payable in 2017).
- September 25 Pay repairs and maintenance expenses, $11,400.
- October 19 Purchase equipment for $6,400 cash.
- December 30 Pay $1,100 cash dividends to stockholders.
- Accrued salaries at year-end amounted to $1,100. Depreciation for the year on the equipment is $3,400. Office supplies remaining on hand at the end of the year equal $1,000.
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.
Solutions
Expert Solution
| 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 |
ekkarill92 answered 1 year agoRelated Solutions
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, 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
$
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,...
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Account...
On January 1, 2018, the general ledger of ACME Fireworks
includes the following account balances:
Account
Debit
Credit
Cash
$25,200
Accounts Receivable
46,400
Allowance for Uncollectible Accounts
$4,300
Inventory
20,100
Land
47,000
Equipment
16,000
Accumulated Depreciation
1,600
Accounts Payable
28,600
Notes Payable (6%, due April 1, 2019)
51,000
Common Stock
36,000
Retained Earnings
33,200
Totals
154,700
154,700
During January 2018, the following transactions
occur:
January 2. Sold gift cards totaling $8,200. The cards
are redeemable for merchandise within one year...
On January 1, 2018, the general ledger of TNT Fireworks includes the following account balances: ...
On January 1, 2018, the general ledger of TNT Fireworks includes
the following account balances:
Accounts
Debit
Credit
Cash
$
59,200
Accounts
Receivable
26,000
Allowance for
Uncollectible Accounts
2,700
Inventory
36,800
Notes Receivable
(5%, due in 2 years)
18,000
Land
160,000
Accounts
Payable
15,300
Common Stock
225,000
Retained
Earning
57,000
Totals
$
300,000
$
300,000
During January 2018, the following transactions occur:
January 1. Purchase equipment for $20,000. The company estimates a
residual value of $2,000 and...
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