Question
Red Storm Cleaners' general ledger as of January 1, 2018 includes the following account balances: accounts Debts Credits Money ps 17,500 accounts receivable 7,500 supplies
Red Storm Cleaners' general ledger as of January 1, 2018 includes the following account balances:
accounts | Debts | Credits | ||||
Money | ps | 17,500 | ||||
accounts receivable | 7,500 | |||||
supplies | 3500 | |||||
Equipment | 12,500 | |||||
Accumulated depreciation | ps | 4,000 | ||||
Salaries to pay | 6,000 | |||||
Common actions | 22,500 | |||||
Retained earnings | 8,500 | |||||
Totals | ps | 41,000 | ps | 41,000 | ||
The following is a summary of the transactions for the year: a. March 12 Provide services to clients, $55,000, of which $20,500 are on account. b. May 2 Collection of accounts receivable, $17,500. C. June 30 Issue common stock in exchange for $4,000 cash. d. August 1 Pay salaries, $25,500 (of which $6,000 correspond to salaries to be paid in 2017). e. September 25 Pay repair and maintenance expenses, $12,500. F. October 19 Purchase of equipment for $7,500 in cash. g. December 30 Pay cash dividends of $1,200 to stockholders. Question 1: Enter unadjusted trial balance balances and post adjusting entries to T accounts, and post closing entries to T accounts. Question 2: Record each of the summarized transactions listed above. Question 3: Prepare an unadjusted trial balance. Question 4: Registration of adjusting entries. Accrued salaries at the end of the fiscal year amounted to $1,200. Depreciation for the equipment year is $4,500. The office supplies left on hand at the end of the year equal $1,100. Question 5: Prepare an adjusted trial balance. Question 6: Prepare the income statement for the year ended December 31, 2018. Question 7: Prepare the classified balance sheet for the year ended December 31, 2018. Question 8: Record of closing entries. Question 9: Prepare a post-closing trial balance. |
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