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

Accounts	Debits			Credits
Cash	$	17,500
Accounts Receivable		7,500
Supplies		3,500
Equipment		12,500
Accumulated Depreciation				$	4,000
Salaries Payable					6,000
Common Stock					22,500
Retained Earnings					8,500
Totals	$	41,000		$	41,000

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

March 12 Provide services to customers, $55,000, of which $20,500 is on account.

May 2 Collect on accounts receivable, $17,500.

June 30 Issue shares of common stock in exchange for $4,000 cash.

August 1 Pay salaries, $25,500 (of which $6,000 is for salaries payable in 2017).

September 25 Pay repairs and maintenance expenses, $12,500.

October 19 Purchase equipment for $7,500 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 $4,500. Office supplies remaining on hand at the end of the year equal $1,100.

7. value: 1.00 points 8-a. Prepare statement for the year ended December 31, 2018. RED STORM CLEANERS Income Statement For the Year Ended December 31, 2018 Accounts payable Accounts receivable Accumulated depreciation Advertising expense Total expenses 0

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