Anna Khan opened Anna\'s carpet cleaners on March 1. During the month of March t
ID: 2462113 • Letter: A
Question
Anna Khan opened Anna's carpet cleaners on March 1. During the month of March the following transactions were completed.
Mar 1 Issued 10,000 Capital Stock for Cash.
1 Purchased used truck for 6,000 paying 4,000 cah and the balance on account
3 Purchased cleaning supplies for 1,200
5 Paid 1,800 cash on one year insurance policy effective March 1
14 Billed customers 2,800 for cleaning services
18 Paid 1,500 cash on amount owed on truck and 500 on amount owed on cleaning supplies
20 Paid 1,500 cash for employees salaries
21 collected 1,600 cash from customers billed on July 14
28 Billed customers 3,500 for cleaning services
31 Paid gas and oil for month on truck 200
31 Paid 900 in dividends
- Journalize and post March transactions
Explanation / Answer
Answer: journal entry:
1 March Cash A/C Dr. $10000
To Capital stock A/C $10000
1 MArch
Dr Truck 6,000
Cr Cash 4,000
Cr Accounts Payable 2,000
3 March
Dr Cleaning Supplies 1200
Cr Accounts Payable 1200
5 March
Dr Prepaid Insurance 1,800
Cr Cash 1,800
14 March
Dr Accounts Receivable 2800
Cr Service Fees 2800
18 March
Dr Accounts Payable, Truck 1,500
Dr Accounts Payable, Cleaning Supplies 500
Cr Cash 2,000
20 March
Dr Wages Expense 1500
Cr Cash 1500
21 March
Dr Cash 1600
Cr Accounts Receivable 1600
28 March
Dr Accounts Receivable 3500
Cr Service Fees 3500
31 March
Dr Truck Maintenance Expense 200
Cr Cash 200
31 March
Dr Dividend 900
Cr Cash 900
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