Harry Craig opened Craig Cleaners on March 1, 2015. During March, the following
ID: 2446091 • Letter: H
Question
Harry Craig opened Craig Cleaners on March 1, 2015. During March, the following transactions were completed.
Mar 1 Issued 10,000 shares of common stock for $20,000 cash.
1 Purchased used equipment for $9,000, paying $3,000 cash and the balance on account.
3 Purchased cleaning supplies on account for $3,000.
4 Paid $2,400 cash on a 6-month insurance policy effective March 1, 2015.
7 Paid $ 1,600 for monthly rent.
14 Billed customers $ 5,400 for cleaning services.
18 Paid $ 1,400 cash on account owed on equipment and $ 500 on account owed on cleaning supplies.
20 Paid $1,900 cash for employee salaries.
21 Collected $3,100 cash from customers billed on March 14.
22 Billed customers $ 5,800 for cleaning services.
23 Paid $400 for gas and oil used in truck during month (use Maintenance and Repairs Expense).
31 Declared and paid a $ 500 cash dividend.
The chart of accounts for Craig Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Depreciation Expense, Rent Expense, Supplies Expense, Insurance Expense, Salaries and Wages Expense.
Instructions:
Journalize the March transactions.
Post to the ledger accounts (Use T-accounts)
Prepare a trial balance at March 31, 2015
Journalize the following adjustments:
Services performed but unbilled at March 31 was $300
Depreciation on equipment for the month was $150
One-sixth of the insurance expired.
An inventory count shows that $ 930 of cleaning supplies on hand at March 31.
Accrued but unpaid employee salaries were $1,350.
Post adjusting entries to the T-accounts.
Prepare an adjusted trial balance.
Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31.
Journalize and post closing entries and complete the closing process.
Prepare a post-closing trial balance at March 31.
Explanation / Answer
Harry Craig opened Craig Cleaners on March 1, 2015. During March, the following
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.