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Problem 3-8A Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7) The general ledger of Red Storm Cleaners at January 1, 2021, includes the
Problem 3-8A Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7)
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. |
Problem 3-8A Parts 1, 3, 6 and 10
Required:
1., 3., 6., & 10. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.
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