Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $14,000 Accounts Receivable 6,800 Supplies 2,800 Equipment 16,000 Accumulated Depreciation $ 5,400 Salaries Payable 7,900 Common Stock 19,000 Retained Earnings 7,300 Totals $39, 600 $39,600 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $48,000, of which $19,800 is on account. 2. May 2 Collect on accounts receivable, $16,800. 3. June 30 Issue shares of common stock in exchange for $5,000 cash. 4. August 1 Pay salaries of $7,900 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,800. 6. October 19 Purchase equipment for $6,800 cash. 7. December 30 Pay $1,000 cash dividends to stockholders. 7. Prepare an adjusted trial balance. 7. Prepare an adjusted trial balance. X Answer is complete but not entirely correct. Credit 5,400 X RED STORM CLEANERS Adjusted Trial Balance December 31, 2021 Accounts Debit Cash $ 36,500 Accounts Receivable 9,800 Supplies 1,200 Equipment 22,800 Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Dividends 1,000 Service Revenue Salaries Expense 0 X Repairs and Maintenance Expense 11,800 Depreciation Expense 0 Supplies Expense 0 X Totals 83,100 $ 0 X 24,000 7,300 48,000 $ 84,700 Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $14,000 Accounts Receivable 6,800 Supplies 2,800 Equipment 16,000 Accumulated Depreciation $ 5,400 Salaries Payable 7,900 Common Stock 19,000 Retained Earnings 7,300 Totals $39, 600 $39,600 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $48,000, of which $19,800 is on account. 2. May 2 Collect on accounts receivable, $16,800. 3. June 30 Issue shares of common stock in exchange for $5,000 cash. 4. August 1 Pay salaries of $7,900 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $11,800. 6. October 19 Purchase equipment for $6,800 cash. 7. December 30 Pay $1,000 cash dividends to stockholders. 7. Prepare an adjusted trial balance. 7. Prepare an adjusted trial balance. X Answer is complete but not entirely correct. Credit 5,400 X RED STORM CLEANERS Adjusted Trial Balance December 31, 2021 Accounts Debit Cash $ 36,500 Accounts Receivable 9,800 Supplies 1,200 Equipment 22,800 Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Dividends 1,000 Service Revenue Salaries Expense 0 X Repairs and Maintenance Expense 11,800 Depreciation Expense 0 Supplies Expense 0 X Totals 83,100 $ 0 X 24,000 7,300 48,000 $ 84,700
