The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Debits $13,500 6,700 2,700 16,500 Credits $5,600 8,100 18,500 7,200 Totals $39,400 $39,400 The following is a summary of the transactions for the year: a. March 12 Provide services to customers, $47,000, of which $19,700 is on account. b. May 2 Collect on accounts receivable, $16,700 c. June 30 Issue shares of common stock in exchange for $6,000 cash d. August 1 Pay salaries, $24,700 (of which $8,100 is for salaries payable in 2017) e. September 25 Pay repairs and maintenance expenses, $11,700 f. October 19 Purchase equipment for $6,700 cash g. December 30 Pay $1,100 cash dividends to stockholders Required 1., 3.6.&10. Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts Cash Accounts Receivable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Supplies Equipment Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accumulated Depreciation Salaries Payable Beg. Bal Beg. Bal End. Bal. End. Bal Common Stock Retained Earnings Beg. Bal. Beg. Bal. End. Bal. End. Bal Service Revenue Dividends Beg. Bal Beg. Bal. End. Bal. End. Bal Salaries Expense R&M Expense Beg. Bal. Beg. Bal End. Bal. End. Bal Depreciation Expense Supplies Expense Beg. Bal Beg. Bal End. Bal End. Bal. Journal entry worksheet 2 3 4 5 6 7 Record the service revenue for the year. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 Record the collection of accounts receivable. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry Clear entry View general journal Journal entry worksheet 2 4 6 7 Record the issuance of additional stock Note: Enter debits before credits. Transaction General Journal Debit Credit . Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 Record the payment of salaries. Note: Enter debits before credits Transaction General Journal Debit Credit d. Record entry Clear entry View general journal Journal entry worksheet 2 3 4 6 Record repairs and maintenance expense. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 Record the purchase of equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 Record the payment of cash dividends. Note: Enter debits before credits. Transaction General Journal Debit Credit 9 Record entry Clear entry View general journal 4. Prepare an unadjusted trial balance. RED STORM CLEANERS Unadjusted Trial Balance December 31, 2018 Debit Accounts Cash Accounts receivable Supplies Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Dividends Service revenue Salaries expense Repairs and maintenance expense Depreciation expense Supplies expense Credit Totals 5. Record adjusting entries. Accrued salaries at year-end amounted to $1,100. Depreciation for the year on the equipment is $3,700. Office supplies remaining on hand at the end of the year equal $1,000. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment for salaries. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 Record the adjustment for depreciation. Note: Enter debits before credits. Transaction General Journa Debit Credit 2 Record entry Clear entry View general journal Journal entry worksheet 2 3 Record the adjustment for supplies. Note: Enter debits before credits. Transaction General Journal Debit Credit 3 Record entry Clear entry View general journal 7. Prepare an adjusted trial balance. RED STORM CLEANERS Adjusted Trial Balance December 31, 2018 Debit Credit Accounts Cash Accounts receivable Supplies Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Dividends Service revenue Salaries expense Repairs and maintenance expense Depreciation expense Supplies expense Totals 8-a. Prepare the income statement for the year ended December 31, 2018. RED STORM CLEANERS Income Statement For the Year Ended December 31, 2018 Expenses: Total expenses 8-b. Prepare the classified balance sheet for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) RED STORM CLEANERS Balance Sheet December 31, 2018 Assets Liabilities Current assets Current liabilities Stockholders' Equity Total current assets Long-term assets: Total stockholders' equity Total Liabilities and Stockholders' Equity Total Assets View transaction list Journal entry worksheet 1 2 Record the entry to close the revenue accounts Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal 9. Record closing entries. If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 Record the entry to close the expense accounts. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal 9 Record closing entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the entry to close the dividends account. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal 11. Prepare a post-closing trial balance. RED STORM CLEANERS Post-Closing Trial Balance December 31, 2018 Accounts Debit Credit Totals