The general ledger of Red Storm Cleaners at January 1, 2018,includes the following account balances:
| Accounts | Debits | Credits |
| Cash | $ | 12,000 | | | | |
| Accounts Receivable | | 6,400 | | | | |
| Supplies | | 2,400 | | | | |
| Equipment | | 18,000 | | | | |
| Accumulated Depreciation | | | | $ | 6,200 | |
| Salaries Payable | | | | | 8,700 | |
| Common Stock | | | | | 17,000 | |
| Retained Earnings | | | | | 6,900 | |
| | | | | | |
| Totals | $ | 38,800 | | $ | 38,800 | |
| | | | | | |
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The following is a summary of the transactions for the year:
- March 12 Provide services to customers, $44,000, of which$19,400 is on account.
- May 2 Collect on accounts receivable, $16,400.
- June 30 Issue shares of common stock in exchange for $6,000cash.
- August 1 Pay salaries, $24,400 (of which $8,700 is for salariespayable in 2017).
- September 25 Pay repairs and maintenance expenses,$11,400.
- October 19 Purchase equipment for $6,400 cash.
- December 30 Pay $1,100 cash dividends to stockholders.
- Accrued salaries at year-end amounted to $1,100. Depreciationfor the year on the equipment is $3,400. Office supplies remainingon hand at the end of the year equal $1,000.
Required:
1., 3. 6. & 10. Enter the unadjustedbalances from the trial balance and post the adjusting entries tothe T-accounts, and post the closing entries to the T-accounts.
2. Record each of the summary transactionslisted above. (If no entry is required for a particulartransaction, select "No journal entry required" in the firstaccount field.)
4. Prepare an unadjusted trial balance.
5. Record adjusting entries. (If noentry is required for a particular transaction/event, select "Nojournal entry required" in the first account field.)
7. Prepare an adjusted trial balance.
8-a. Prepare the income statement for the yearended December 31, 2018.
9. Record closing entries. (If no entryis required for a particular transaction/event, select "No journalentry required" in the first account field.)
11. Prepare a post-closing trial balance.
