WITH THE FOLLOWING DATA, PREPARE THE INCOME STATEMENTS AND PREPARE FOR THE CLASSIFIED BALANCE SHEET.

PREPARE THE INCOME STATEMENT FOR THE YEAR AND THE CLASSIFIED BALANCE SHEET, FOLLOW THE FOLLOWING FORMAT

Required information The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $15,500 Accounts Receivable 7,100 Supplies 3,100 Equipment 10,500 Accumulated Depreciation $ 3,200 Salaries Payable 5,200 Common Stock 20,500 Retained Earnings 7,300 Totals $36,200 $36,200 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $51,000, of which $20,100 is on account. 2 Collect on accounts receivable, $17,100. 2. May 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 1 Pay salaries of $5,200 from 2020 (prior year). 4. August 5. September 25 Pay repairs and maintenance expenses, $12,100. 6. October 19 Purchase equipment for $7,100 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. No 1 2 Date December 31, 202 Salaries Expense Salaries Payable December 31, 202 Depreciation Expense December 31, 202 Supplies Expense Supplies Answer is complete and correct. General Journal Accumulated Depreciation Debit 19,600 4,100 1,900 Credit 19,600 4,100 1,900 RED STORM CLEANERS Adjusted Trial Balance December 31, 2021 $ 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 Debit 44,000 10,100 1,200 17,600 1,100 19,600 12,100 4,100 1,900 S 111,700 $ Credit 7,300 19,600 26,500 7,300 51,000 111,700 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 Expenses: Total expenses 0 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.) RED STORM CLEANERS Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Total Current Assets Long-term assets: Total Assets $ 0 Current Liabilities: Stockholders' Equity Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity $ 0 0