Laura Eddy opened Eddy\'s Carpet Cleaners on March 1. During March, the followin

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Laura Eddy opened Eddy's Carpet Cleaners on March 1. During March, the following transactions were completed. Mar. 1 Stockholders invested $10,300 in cash in the business in exchange for common stock. 1 Purchased used truck for $6,300, paying $3,150 cash and the balance on account. 3 Purchased cleaning supplies for $1,500 on account. 5 Paid $1,560 cash on one-year insurance policy effective March 1. 14 Billed customers $5,100 for cleaning services. 18 Paid $1,800 cash on amount owed on truck and $500 on amount owed on cleaning supplies. 20 Paid $1,800 cash for employee salaries. 21 Collected $1,400 cash from customers billed on March 14. 28 Billed customers $2,500 for cleaning services. 31 Paid gas and oil for month on truck $200. 31 Declared and paid a $850 cash dividend. The chart of accounts for Eddy's Carpet Cleaners contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Common Stock, No. 320, Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense Your answer is partially correct. Journalize the March transactions. Use page J1 for the journal. (List amounts from largest to smallest e.g. 10, 5, 3, 2. If amounts are the same list alphabetically.) General Journal J1 Date Description Debit Credit Mar. 1 Mar. 1 Mar. 3 Mar. 5 Mar. 14 Mar. 18 Mar. 20 Mar. 21 Mar. 28 Mar. 31 Mar. 31 Prepare a trial balance at March 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet. (If answer is zero, please enter 0. Do not leave any fields blank. Round all answers to 0 decimal places, e.g. 125.) Earned but unbilled revenue at March 31 was $850. Depreciation on equipment for the month was $250. One-twelfth of the insurance expired. An inventory count shows $550 of cleaning supplies on hand at March 31. Accrued but unpaid employee salaries were $500. EDDY'S CARPET CLEANERS Worksheet For the Month Ended March 31, 2011 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Equipment Accounts Payable Common stock Dividends Service Revenue Gas & Oil Expense Salaries Expense Totals Depreciation Expense Accumulated Depreciation Insurance Expense Cleaning Supplies Expense Salaries Payable Totals Net Income Totals Your answer is partially correct. Try again. Prepare the income statement and retained earnings statement for March and a classified balance sheet at March 31. (List amounts from largest to smallest e.g. 10, 5, 3, 2. List assets in order of liquidity and liabilities from largest to smallest e.g. 10, 5, 3, 2. If answer is zero, please enter 0. Do not leave any fields blank. Enter all amounts as positive amounts and subtract where necessary.) EDDY'S CARPET CLEANERS Income Statement For the Month Ended March 31, 2011 Revenues $ Expenses $ Total expenses Net income $ EDDY'S CARPET CLEANERS Retained Earnings Statement For the Month Ended March 31, 2011 $ Add: Less: $ EDDY'S CARPET CLEANERS Balance Sheet March 31, 2011 Assets Current Assets $ Total current assets $ Property, plant and equipment $ Less: Total assets $ Liabilities and Stockholders' Equity Current liabilities $ Total current liabilities $ Stockholders' Equity $ Total stockholders' equity Total liabilities and stockholders' equity $ Your answer is partially correct. Try again. Journalize adjusting entries. Use page J2 for the journal. General Journal J2 Date Description Debit Credit Mar. 31 (To adjust accounts receivable.) Mar. 31 (To adjust depreciation.) Mar. 31 (To adjust insurance.) Mar. 31 (To adjust cleaning supplies.) Mar. 31 (To adjust salaries.) Journalize the closing entries. Use page J3 for the journal. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.) General Journal J3 Date Description/Account Debit Credit Mar. 31 (To close revenue account.) Mar. 31 (To close expense accounts.) Mar. 31 (To close net income to capital.) Mar. 31 (To close dividends to capital.) Incorrect. Post the March transactions and adjusting entries using the three-column form of account. Post the closing entries and complete the closing process. (If answer is zero, please enter 0. Do not leave any fields blank.) Cash No. 101 Date Explanation Ref. Debit Credit Balance Mar. 1 J1 1 J1 5 J1 18 J1 20 J1 21 J1 31 J1 31 J1 Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance Mar. 14 J1 21 J1 28 J1 31 Adjusting J2 Cleaning Supplies No. 128 Date Explanation Ref. Debit Credit Balance Mar. 3 J1 31 Adjusting J2 Prepaid Insurance No. 130 Date Explanation Ref. Debit Credit Balance Mar. 5 J1 31 Adjusting J2 Equipment No. 157 Date Explanation Ref. Debit Credit Balance Mar. 1 J1 Accumulated Depreciation - Equipment No. 158 Date Explanation Ref. Debit Credit Balance Mar. 31 J2 Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance Mar. 1 J1 3 J1 18 J1 Salaries Payable No. 212 Date Explanation Ref. Debit Credit Balance Mar. 31 Adjusting J2 Common Stock No. 311 Date Explanation Ref. Debit Credit Balance Mar. 1 J1 Retained Earnings No. 320 Date Explanation Ref. Debit Credit Balance Mar. 1 J1 31 Closing J3 31 Closing J3 Dividends No. 332 Date Explanation Ref. Debit Credit Balance Mar. 31 J1 31 Closing J3 Income Summary No. 350 Date Explanation Ref. Debit Credit Balance Mar. 31 Closing J3 31 Closing J3 31 Closing J3 Service Revenue No. 400 Date Explanation Ref. Debit Credit Balance Mar. 14 J1 28 J1 31 Adjusting J2 31 Closing J3 Gas & Oil Expense No. 633 Date Explanation Ref. Debit Credit Balance Mar. 31 J1 31 Closing J3 Cleaning Supplies Expense No. 634 Date Explanation Ref. Debit Credit Balance Mar. 31 Adjusting J2 31 Closing J3 Depreciation Expense No. 711 Date Explanation Ref. Debit Credit Balance Mar. 31 Adjusting J2 31 Closing J3 Insurance Expense No. 722 Date Explanation Ref. Debit Credit Balance Mar. 31 Adjusting J2 31 Closing J3 Salaries Expense No. 726 Date Explanation Ref. Debit Credit Balance Mar. 20 J3 31 Adjusting J3 31 Closing J3 Incorrect. Prepare a post-closing trial balance at March 31. (If answer is zero, please enter 0. Do not leave any fields blank.) EDDY'S CARPET CLEANERS Post-Closing Trial Balance March 31, 2011 Trial Balance Account Titles Dr. Cr. Cash $ $ Accounts Receivable Cleaning Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salaries Payable Common stock Retained Earnings $ $

Explanation / Answer

General Journal J1 Date Description Debit Credit Mar. 1 Cash 10300 Common stock 10300 Mar. 1 Equipment 6300 Accounts payable 3150 Cash 3150 Mar. 3 Cleaning supplies 1500 Accounts payable 1500 Mar. 5 Prepaid insurance 1560 Cash 1560 Mar. 14 Accounts receivable 5100 Service revenue 5100 Mar. 18 Accounts payable 2000 Cash 2000 Mar.20 Salaries expense 1800 Cash 1800 Mar. 21 Cash 1400 Accounts receivable 1400 Mar. 28 Accounts receivable 2500 Service revenue 2500 Mar. 31 Gas & Oil expense 200 Cash 200 Mar. 31 Dividends 850 Cash 850

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