[The following information applies to the questions displayed below.]

The general ledger of Red Storm Cleaners at January 1, 2015, includes the following account balances:

Accounts Debits Credits

Cash $ 12,500

Accounts Receivable 6,500

Supplies 2,500

Equipment 17,500

Accumulated Depreciation $ 6,000

Salaries Payable 8,500

Common Stock 17,500

Retained Earnings 7,000

Totals $ 39,000 $ 39,000

The following is a summary of the transactions for the year:

a. Sales of services, $45,000, of which $19,500 is on account.

b. Collect on accounts receivable, $16,500.

c. Issue shares of common stock in exchange for $5,000 cash.

d. Pay salaries, $24,500 (of which $8,500 is for salaries payable in 2014).

e. Pay repairs and maintenance expenses, $11,500.

f. Purchase equipment for $6,500 cash.

g. Pay $1,000 cash dividends to stockholders.

The following information applies to the questions displayed below.] The general ledger of Red Storm Cleaners at January 1, 2015, includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Debits Credits $12,500 6,500 2,500 17,500 6,000 8,500 17,500 7,000 Totals $39,000 $39,000 The following is a summary of the transactions for the year a. Sales of services, $45,000, of which $19,500 is on account. b. Collect on accounts receivable, $16,500. c. Issue shares of common stock in exchange for $5,000 cash. d. Pay salaries, $24,500 (of which $8,500 is for salaries payable in 2014) e. Pay repairs and maintenance expenses, $11,500 f. Purchase equipment for $6,500 cash. g. Pay $1,000 cash dividends to stockholders