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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:

accountsDebtsCredits
Moneyps17,500



accounts receivable
7,500



supplies
3500



Equipment
12,500



Accumulated depreciation


ps4,000
Salaries to pay



6,000
Common actions



22,500
Retained earnings



8,500







Totalsps41,000
ps41,000







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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