Harry Craig opened Craig Cleaners on March 1, 2015. During March, the following
ID: 2448269 • 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 and post closing entries and complete the closing process.
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 Closing Entries Date Mar 31. Account Dr $ Cr $ Service Revenue 11,200 Income Statement 11,200 Salaries & Wages Expense 1,900 Maintenance & Repairs Expense 400 Rent Expense 1,600 Income Statement 3,900 15,100 15,100 Reatines Earnings 7,300 Income Statement 7,300 Posting in Ledger account. Service Revenue Date Details Dr $ Date Details Crs $ Mar 31. To income Statement 11,200 Mar 14. By Accounts Receivable 5,400 Mar 22. By Accounts Receivable 5,800 account. Maintenance & Repairs Expense Date Details Dr $ Date Details Crs $ Mar 23. To Cash 400 Mar 31. By Income Statement 400 account. Rent Expense Date Details Dr $ Date Details Crs $ Mar 7. To Cash 1,600 Mar 31. By Income Statement 1,600 account. Salaries & Wages Expense Date Details Dr $ Date Details Crs $ Mar 20. To Cash 1,900 Mar 31. By Income Statement 1,900 account. Income Statement Date Details Dr $ Date Details Crs $ Mar 20. To Rent Expense 1,600 Mar 31. By Seervice Revenue 11,200 To Repair & Maint Exp 400 Mar 31. By Retained earning 7,300 To Salaries & Wages Exp 1,900 account. Reatines Earnings Date Details Dr $ Date Details Crs $ Mar 24. To cash 500 Mar 31. By Income Statement 7,300 Mar 31. By Balance 6,800 Craig Cleaners Post Closing 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 Reatined Earning 6,800 Total 33,900 33,900
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