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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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