Harry Craig opened Craig Cleaners on March 1, 2015. During March, the following

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:

Post to the ledger accounts (Use T-accounts)

Explanation / Answer

Post to the ledger accounts (Use T-accounts) (All values in $) Cash A/c Accounts Receivable A/c Supplies A/c Prepaid Insurance A/c 1/3 To Common Stock A/c 20000 1/3 By Equipment A/c 3000 14/3 To Service Revenue A/c 5400 21/3 By Cash A/c 3100 18/3 To Cash A/c 500 3/3 By Supplies Expense A/c 3000 4/3 To Insurance A/c 2000 21/3 To Accounts Receivable A/c 3100 4/3 By Insurance A/c 2400 22/3 To Cleaning Services A/c 5800 7/3 By Rent A/c 1600 18/3 By Accounts Payable A/c 2400 18/3 By Supplies A/c 500 20/3 By Employee Salaries A/c 1900 23/3 By Maintenance and Repair A/c 400 31/3 By Dividend A/c 500 Equipment A/c Accumulated Depn Equip A/c Accounts Payable A/c Salaries and Wages Payable A/c 1/3 To Cash A/c 3000 18/3 To Cash A/c 1400 1/3 By Equipment A/c 6000 1/3 To Accounts Payable A/c 6000 Common Stock A/c Retained Earnings A/c Dividends A/c Service Revenue A/c 1/3 By Cash A/c 20000 31/3 To Cash A/c 500 14/3 By Accounts Receivable A/c 5400 22/3 By Accounts Receivable A/c 5800 Maintenance and Repair A/c Depreciation A/c Rent A/c Supplies A/c 23/3 To Cash A/c 400 7/3 To Cash A/c 1600 3/3 To Supplies A/c 3000 Insurance A/c Salaries and Wages A/c 4/3 To Cash A/c 2400 4/3 By Prepaid Insurance A/c 2000 20/3 To Cash A/c 1900

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