[The following information applies to the questions displayed below.] The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances:
Accounts Debits Credits
Cash $19,000
Accounts Receivable 7,800
Supplies 3,800
Equipment 14,000
Accumulated Depreciation $4,600
Salaries Payable 6,600
Common Stock 24,000
Retained Earnings 9,400
Totals $44,600 $44,600
The following is a summary of the transactions for the year:
March 12 Provide services to customers, $58,000, of which $20,800 is on account.
May 2 Collect on accounts receivable, $17,800.
June 30 Issue shares of common stock in exchange for $4,000 cash.
August 1 Pay salaries, $25,800 (of which $6,600 is for salaries payable in 2017).
September 25 Pay repairs and maintenance expenses, $12,800.
October 19 Purchase equipment for $7,800 cash.
December 30 Pay $1,200 cash dividends to stockholders.
Accrued salaries at year-end amounted to $1,200. Depreciation for the year on the equipment is $4,800. Office supplies remaining on hand at the end of the year equal $1,100.
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.
2. Record each of the summary transactions listed above. (If no entry is required for a particular transaction, 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.)
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.)
11. Prepare a post-closing trial balance.