Enter the unadjusted balances from the trial balance

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Reference no: EM131796136

The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances:

  Accounts Debits Credits
  Cash $20,000  
  Accounts Receivable 8,000  
  Supplies 4,000  
  Equipment 15,000   
  Accumulated Depreciation   $5,000
  Salaries Payable   7,500
  Common Stock   25,000
  Retained Earnings   9,500
       Totals $47,000 $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, $26,000 (of which $7,500 is for salaries payable in 2017).
  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.
  8. Accrued salaries at year-end amounted to $1,100. Depreciation for the year on the equipment is $5,000. Office supplies remaining on hand at the end of the year equal $1,200.

References Section BreakProblem 3-8A Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7)  8. value:
1.00 points Required information  

Problem 3

Required:

1. 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.

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.)

4. Prepare an unadjusted trial balance.

5. Record adjusting entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

1.00 points Required information  

7. Prepare an adjusted trial balance.

8-a. Prepare the income statement for the year ended December 31, 2018.

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.)

9. Record closing entries. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)

Prepare a post-closing trial balance.

Reference no: EM131796136

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