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5. Record closing entries. 6Post closing entries to the accounts P3-SA The general ledger of Red Storm Cleaners at January 1, 2018, includes the following

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5. Record closing entries. 6Post closing entries to the accounts P3-SA The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances: Prepare a post-closing trial balance. the fut cycle (L03-3, 3-6,3-7 Debits Credits Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreclation Salaries Payable Common Stock Retained Earnings $20,000 8,000 4,000 15,000 5,000 7,500 25,000 9,500 Totals $47.000 $47000 The following is a summary of the transactions for the year: . March 12 Provide services to customers, $60,000, of which $21,000 is on account. b. May 2 Collect on accounts receivable, $18,000. c June 30 Issue shares of common stock in exchange for $6,000 cash d. August 1 Pay salaries, $26,000 (of which $7,500 is for salaries payable in 2017). e. September 25 Pay repairs and maintenance expenses, $13,000. f. October 19 Purchase equipment for $8,000 cash. & December 30 Pay $1,100 cash dividends to stockholders. Required: 1. Set up the necessary T-accounts and enter the beginning balances from the trial balance. In addition to the accounts shown, the company also has accounts for Dividends, Service Revenue, Salaries Expense, Repairs and Maintenance Expense, Depreciation Expense, and Supplies Expense. 2. Record each of the summary transactions listed above 3. Post the transactions to the accounts. 4. Prepare an unadjusted trial balance. 5. Record adjusting entries. Accrued salaries at year-end amounted to $1,100. Depreciation for the year on the equipment is $5,000. Office supplies remaining on hand at the end of the year equal $1,200. 6. Post adjusting entries 7. Prepare an adjusted trial balance. 8. Prepare an income statement for 2018 and a classified balance sheet as of December 31, 2018, 9. Record closing entries. 0. Post closing entries. 11. Prepare a post-closing trial balance

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