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I am kinda confused. What's the difference between adjusted and unadjusted? I guess what I answered is an adjusted one. Required information The general ledger
I am kinda confused. What's the difference between adjusted and unadjusted? I guess what I answered is an adjusted one.
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $20,000 8,000 4,000 15,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 5,000 7,500 25,000 9,500 $ 47,000 $ 47,000 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $60,000, of which $21,000 is on account. 2. May 2 Collect on accounts receivable, $18,000. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $7,500 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $13,000. 6. October 19 Purchase equipment for $8,000 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. 4. Prepare an unadjusted trial balance. Answer is complete but not entirely correct. RED STORM CLEANERS Unadjusted Trial Balance December 31, 2021 Accounts Debit Credit Cash $ 53,400 Accounts Receivable 11,000 Supplies 1,200 X Equipment 23,000 Accumulated Depreciation $ 10,000 Salaries Payable 19,600 Common Stock 31,000 Retained Earnings 9,500 Dividends 1,100 Service Revenue 60,000 Salaries Expense 19,600 Repairs and Maintenance Expense 13,000 Depreciation Expense 5,000 Supplies Expense 2,800 Totals $ 130,100 $ 130,100Step by Step Solution
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