Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $19,500 7,900 3,900 14,500 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 4,800 6,800 24,500 9,700 $45,800 $ 45,800 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $59,000, of which $20,900 is on account. 2. May 2 Collect on accounts receivable, $17,900. 3. June 30 Issue shares of common stock in exchange for $5,000 cash. 4. August 1 Pay salaries of $6,800 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $12,900. 6. October 19 Purchase equipment for $7,900 cash. 7. December 30 Pay $1,000 cash dividends to stockholders. 8-a. Prepare the income statement for the year ended December 31, 2021. Answer is complete but not entirely correct. RED STORM CLEANERS Income Statement For the Year Ended December 31, 2021 Service Revenue $ 59,000 Expenses: Depreciation Expense Repairs and Maintenance Expense Supplies Expense Salaries Expense 4,900 12,900 3,000 X 19,500 Total expenses Net Income 40,300 18,700 $ 8-b. Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) Assets Current Assets: Cash Accounts Receivable Supplies $ 19,500 Answer is complete but not entirely correct. RED STORM CLEANERS Balance Sheet December 31, 2021 Liabilities Current Liabilities: $ 51,900 Salaries Payable 10,900 1,000 Stockholders' Equity 63,800 Common Stock Retained Earnings 22,400 (9,800) Total Stockholders' Equity $ 76,400 Total Liabilities and Stockholders' Equity 29,500 27,400 Total Current Assets Long-term assets: Equipment Accumulated Depreciation 56,900 76,400 Total Assets $