Harry Craig opened Craig Cleaners on March 1, 2015. During March, the following
ID: 2448263 • 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:
Prepare a trial balance at March 31, 2015
Explanation / Answer
Craig Cleaners JV Date Account Dr $ Cr $ Mar 1. Cash 20,000 Common stock 20,000 Mar 1. Equipment 9,000 Cash 3,000 Accounts Payable 6,000 Mar 3. Supplies 3,000 Accounts Payable 3,000 Mar 4. Prepaid Insurance 2,400 Cash 2,400 Mar 7. Rent Expense 1,600 Cash 1,600 Mar 14. Service Revenue 5,400 Accounts Receivable 5,400 Mar 18. Accounts Payable 1,900 Cash 1,900 Mar 20. Salaries & Wages Expense 1,900 Cash 1,900 Mar 21. Cash 3,100 Accounts Receivable 3,100 Mar 22. Service Revenue 5,800 Accounts Receivable 5,800 Mar 23. Maintenance & Repairs Expense 400 Cash 400 Mar 24. Retained earnings 500 Cash 500 Craig Cleaners Trial Balance Mar 31.2015 Account Dr $ Cr 4 Cash 11,400 Prepaid Insurance 2,400 Supplies 3,000 Accounts Receivable 8,100 Equipment 9,000 Common stock 20,000 Accounts Payable 7,100 Service Revenue 11,200 Salaries & Wages Expense 1,900 Maintenance & Repairs Expense 400 Rent Expense 1,600 Reatined Earnings -500 Total 37800 37800
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