Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prepare an adjusted trial balance. Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits
Prepare an adjusted trial balance.
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $18,000 Accounts Receivable 7,600 Supplies 3,600 Equipment 13,000 Accumulated Depreciation Salaries Payable $ 4,200 6,200 Common Stock 23,000 Retained Earnings 8,800 Totals $42, 200 $42,200 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $56,000, of which $20,600 is on account. 2. May 2 Collect on accounts receivable, $17,600. 3. June 30 Issue shares of common stock in exchange for $5,000 cash. 4. August 1 Pay salaries of $6,200 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $12,600. 6. October 19 Purchase equipment for $7,600 cash. 7. December 30 Pay $1,000 cash dividends to stockholders. Adjusted Trial Balance December 31, 2021 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Repairs and Maintenance Expense Depreciation Expense Supplies Expense Totals 69 $ Debit 0 $ Credit 0Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started