| The general ledger of Red Storm Cleaners at January 1, 2015, includes the following account balances: |
| Accounts | Debits | Credits | ||||
| Cash | $ | 14,000 | ||||
| Accounts Receivable | 6,800 | |||||
| Supplies | 2,800 | |||||
| Equipment | 16,000 | |||||
| Accumulated Depreciation | $ | 5,400 | ||||
| Salaries Payable | 7,900 | |||||
| Common Stock | 19,000 | |||||
| Retained Earnings | 7,300 | |||||
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| Totals | $ | 39,600 | $ | 39,600 | ||
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| The following is a summary of the transactions for the year: |
| a. | Sales of services, $48,000, of which $19,800 is on account. |
| b. | Collect on accounts receivable, $16,800. |
| c. | Issue shares of common stock in exchange for $5,000 cash. |
| d. | Pay salaries, $24,800 (of which $7,900 is for salaries payable in 2014). |
| e. | Pay repairs and maintenance expenses, $11,800. |
| f. | Purchase equipment for $6,800 cash. |
| g. |
Pay $1,000 cash dividends to stockholders. |
- Record the service revenue for the year.
- Record the collection of accounts receivable.
- Record the service revenue for the year.
- Record the collection of accounts receivable.
- Record the issuance of additional stock.
- Record the service revenue for the year.
- Record the collection of accounts receivable.
- Record the issuance of additional stock.
- Record the payment of salaries
- Record the service revenue for the year.
- Record the collection of accounts receivable.
- Record the issuance of additional stock.
- Record the payment of salaries.
- Record repairs and maintenance expense.
- Record the service revenue for the year.
- Record the collection of accounts receivable.
- Record the issuance of additional stock.
- Record the payment of salaries.
- Record repairs and maintenance expense.
- Record the purchase of equipment.
- Record the service revenue for the year.
- Record the collection of accounts receivable.
- Record the issuance of additional stock.
- Record the payment of salaries.
- Record repairs and maintenance expense.
- Record the purchase of equipment.
- Record the payment of cash dividends.
- Record repairs and maintenance expense.
- Record repairs and maintenance expense.
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