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The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debita $16,500 7.300 3,300 11,500 Accounts Cash Accounts

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The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Credits Debita $16,500 7.300 3,300 11,500 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salarios Payable Common Stock Retained Earnings Totals $ 3,600 5,600 21,500 7.900 $38,600 $38,600 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, 553,000, of which $20,300 is on account. 2. May 2 Collect on accounts receivable, $17,300. 3. June 30 Issue shares of common stock in exchange for $5,000 cash. 4. August I pay salaries of $5,600 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $12,300. 6. October 19 Purchase equipment for $7,300 cash. 7. December 30 pay $1,000 cash dividends to stockholders. 2. Record each of the summary transactions listed above. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet X: 1 Record the adjusting entry for salaries. Accrued salaries at year-end amounted to $19,500. 2 Record the adjusting entry for depreciation, $4,300. 3 Record the adjusting entry for supplies. Supplies remaining on hand at the end of the year equal $1,000. 8-a. Prepare the income statement for the year ended December 31, 2021. RED STORM CLEANERS Income Statement For the Year Ended December 31, 2021 Service Revenue $ 53,000 19,500 Expenses: Salaries Expense Reparand Maintenance Expense Depreciation Expense Supplies Expense 12,300 4,300 2,300 Total expenses Net Income 38,400 14,600 $ 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 $ RED STORM CLEANERS Balance Sheet December 31, 2021 Liabilities Current Liabilities: $ 45,300 Salarios Payable 10,300 Accumulated Depreciation 1.000 Stockholders' Equity 56,600 Common Stock Retained Earnings 18,800 19,500 7.900 Total Current Assets Long-term assets: Equipment 26,500 21,500 Total Stockholders' Equity 75,400 Total Liabilities and Stockholders' Equity 48,000 75,400 Total Assets $ $

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