Complete the Red Storm Cleaners problem according to all the requirements plus add a Statement of Stockholders Equity to Requirement #8. You will be doing the complete accounting cycle.

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	17,500
Accounts Receivable		7,500
Supplies		3,500
Equipment		12,500
Accumulated Depreciation					$	4,000
Salaries Payable						6,000
Common Stock						22,500
Retained Earnings						8,500
Totals	$	41,000			$	41,000

The following is a summary of the transactions for the year:

1.		March		12		Provide services to customers, $55,000, of which $20,500 is on account.
2.		May		2		Collect on accounts receivable, $17,500.
3.		June		30		Issue shares of common stock in exchange for $4,000 cash.
4.		August		1		Pay salaries of $6,000 from 2020 (prior year).
5.		September		25		Pay repairs and maintenance expenses, $12,500.
6.		October		19		Purchase equipment for $7,500 cash.
7.		December		30		Pay $1,200 cash dividends to stockholders.

Requirements:

1. Set up the necessary T-accounts and enter the beginning balances from the trial balance. Also, the company uses Dividends, Service Revenue, Salaries Expense, Repairs and Maintenance Expense, Depreciation Expense, and Supplies Expense.

2. Record each of the summary transactions listed above.

3. Record each of the summary transactions listed above.

4. Prepare an unadjusted trial balance.

5. Record adjusting entries. Accrued salaries at year-end amounted to $20,700. Depreciation for the year on the equipment is $4,500. Office supplies remaining on hand at the end of the year equal $1,100.

6. Post Adjusting entries.

7. Prepare an adjusted trial balance.

8. Prepare an income statement, statement of stockholder's equity, and balance sheet.

9. Record closing entries.

10. Post closing entries.

11. Prepare a post-closing trial balance.