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The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 20,000 Accounts 8,000 Receivable Supplies 4,000 Equipment 15,000 Accumulated $ 5,000 Depreciation Salaries 7,500 Payable Common Stock Retained Earnings Totals $ 47,000 25,000 9,500 $ 47,000 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $60,000, of which $21,000 is on account. 2. May 2 Collect on accounts receivable, $18,000. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $7,500 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $13,000. 6. October 19 Purchase equipment for $8,000 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. 11. Prepare a post-closing trial balance. Answer is complete but not entirely correct. RED STORM CLEANERS Post-Closing Trial Balance December 31, 2021 Accounts Debit Credit Cash $ 34,900x Accounts Receivable 11,000 Supplies ✓ 1,200 Equipment ✓ 23,000 Accumulated Depreciation $ 10,000 Salaries Payable 1,100. Common Stock 31,000 Retained Earnings 9,500 x Dividends 1,100 × Service Revenue × 60,000 x Salaries Expense × 19,600 x Repairs and Maintenance Expense X 13,000 x Depreciation Expense 5,000 × Supplies Expense 2,800 x Totals $ 111,600 $ 111,600

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 20,000 Accounts 8,000 Receivable Supplies 4,000 Equipment 15,000 Accumulated $ 5,000 Depreciation Salaries 7,500 Payable Common Stock Retained Earnings Totals $ 47,000 25,000 9,500 $ 47,000 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $60,000, of which $21,000 is on account. 2. May 2 Collect on accounts receivable, $18,000. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $7,500 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $13,000. 6. October 19 Purchase equipment for $8,000 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. 11. Prepare a post-closing trial balance. Answer is complete but not entirely correct. RED STORM CLEANERS Post-Closing Trial Balance December 31, 2021 Accounts Debit Credit Cash $ 34,900x Accounts Receivable 11,000 Supplies ✓ 1,200 Equipment ✓ 23,000 Accumulated Depreciation $ 10,000 Salaries Payable 1,100. Common Stock 31,000 Retained Earnings 9,500 x Dividends 1,100 × Service Revenue × 60,000 x Salaries Expense × 19,600 x Repairs and Maintenance Expense X 13,000 x Depreciation Expense 5,000 × Supplies Expense 2,800 x Totals $ 111,600 $ 111,600

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 20,000 Accounts 8,000 Receivable Supplies 4,000 Equipment 15,000 Accumulated $ 5,000 Depreciation Salaries 7,500 Payable Common Stock Retained Earnings Totals $ 47,000 25,000 9,500 $ 47,000 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $60,000, of which $21,000 is on account. 2. May 2 Collect on accounts receivable, $18,000. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $7,500 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $13,000. 6. October 19 Purchase equipment for $8,000 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. 11. Prepare a post-closing trial balance. Answer is complete but not entirely correct. RED STORM CLEANERS Post-Closing Trial Balance December 31, 2021 Accounts Debit Credit Cash $ 34,900x Accounts Receivable 11,000 Supplies ✓ 1,200 Equipment ✓ 23,000 Accumulated Depreciation $ 10,000 Salaries Payable 1,100. Common Stock 31,000 Retained Earnings 9,500 x Dividends 1,100 × Service Revenue × 60,000 x Salaries Expense × 19,600 x Repairs and Maintenance Expense X 13,000 x Depreciation Expense 5,000 × Supplies Expense 2,800 x Totals $ 111,600 $ 111,600
Transcribed Image Text:The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 20,000 Accounts 8,000 Receivable Supplies 4,000 Equipment 15,000 Accumulated $ 5,000 Depreciation Salaries 7,500 Payable Common Stock Retained Earnings Totals $ 47,000 25,000 9,500 $ 47,000 The following is a summary of the transactions for the year: 1. March 12 Provide services to customers, $60,000, of which $21,000 is on account. 2. May 2 Collect on accounts receivable, $18,000. 3. June 30 Issue shares of common stock in exchange for $6,000 cash. 4. August 1 Pay salaries of $7,500 from 2020 (prior year). 5. September 25 Pay repairs and maintenance expenses, $13,000. 6. October 19 Purchase equipment for $8,000 cash. 7. December 30 Pay $1,100 cash dividends to stockholders. 11. Prepare a post-closing trial balance. Answer is complete but not entirely correct. RED STORM CLEANERS Post-Closing Trial Balance December 31, 2021 Accounts Debit Credit Cash $ 34,900x Accounts Receivable 11,000 Supplies ✓ 1,200 Equipment ✓ 23,000 Accumulated Depreciation $ 10,000 Salaries Payable 1,100. Common Stock 31,000 Retained Earnings 9,500 x Dividends 1,100 × Service Revenue × 60,000 x Salaries Expense × 19,600 x Repairs and Maintenance Expense X 13,000 x Depreciation Expense 5,000 × Supplies Expense 2,800 x Totals $ 111,600 $ 111,600
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