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Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $10,000 6,000 2,000 20,000 Accounts
Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debits $10,000 6,000 2,000 20,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Totals $ 7,000 9,500 15,000 6,500 $38,000 $38,000 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $40,000, of which $19,000 is on account. 2. May 2 Collect on accounts receivable, $16,000. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $9,500 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,000. 6. October 19 Purchase equipment for $6,000 cash. 7. December 30 Pay $1,200 cash dividends to stockholders. 11. Prepare a post-closing trial balance. RED STORM CLEANERS Post-Closing Trial Balance December 31, 2021 Accounts Debit Credit Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Common Stock Retained Earnings
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