Harry Craig opened Craig Cleaners on March 1, 2015. During March, the following
ID: 2448270 • 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 post-closing trial balance at March 31.
Explanation / Answer
Since period of expenses not given hence it is notposible to make provision for expenses
Mar01 Cash Dr 20000 To Common Stock 20000 (being stock issued) Mar01 Euipment Dr 9000 To Cash 3000 To Account payable 6000 (being equipment purchased) Mar03 Supplies Dr 3000 To Account payable 3000 (being supplies purchased) Mar04 Insurance Dr 400 Prepaid Ins Dr 2000 To Cash 2400 (being insurance purchased) Mar07 Rent Dr 1600 To Cash 1600 (being rent paid) Mar14 Account Receivable Dr 5400 To Service Revenue 5400 (being revenue due) Mar18 Account payable Dr 1900 To Cash 1900 (being cash paid) Mar20 Salaries Dr 1900 To Cash 1900 (being cash paid) Mar21 Cash Dr 3100 To Account receivable 3100 (being cash received) Mar22 Account Receivable Dr 5800 To Service Revenue 5800 (being revenue due) Mar23 Maintenance and Repair ExpenseDr 400 To Cash 400 (being cash paid) Mar31 Dividend Dr 500 To Cash 500 (being cash paid) Mar31 Service Revenue Dr 11200 To Retained Earnings 6400 To Maintenance and Repaid Expense 400 To Salaries 1900 To Insurance 400 To Rent 1600 To dividend 500 (being incomes and expenses transferred)Related Questions
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