I\'m having difficulty figuring out how to get the answers to part D, everything

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I'm having difficulty figuring out how to get the answers to part D, everything I try to come up with is wrong, and I need this done soon!

·" WileyPLUS 0 edugenwileyplus.com/edugentti/main.uni Assignment> Open Assignment -view Document l Solutionin | 15 Anyone Able To Help Me | just Need Help with Pieces | + CALCULATOR PRINTER VERSION HACK ASSIGNMENT RESOURCES Project2 Comprehensive Accounting Cycle Review 11-2 (Part Level Submission) Karen Noonan opened Shamrock, Inc. on February 1, 2017. During February, the following transactions were completed Feb. 1 Issued 4,600 shares of Clean Sweep common stock for $16,120. Each share has a $1.50 par Accounting Cydle 1 Borrowed $9,000 on a 2-year, 6% note payable Paid $11,180 to purchase used floor and window cleaning equipment from a company going out of business ($5,120 was for the floor equipment and $6,060 for the window equipment) g Cyd 1 Paid $270 for February Internet and phone services. 3 Purchased cleaning supplies for $1,220 on account. 4 Hired 4 employees. Each will be paid $600 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9. eview 11-2 (Part Obtained insurance coverage for $11,040 per year. Coverage runs from February 1, 2017, through January 31, 2018. Karen paid $2,760 cash for the first Review Results quarter of coverage 5 Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window cleaning 16 17 18 20 equipment for $4,900 cash. Billed customers $4,840 for cleaning services performed through February 13, 2017. Received $432 from a customer for 4 weeks of cleaning services to begin February 21, 2017 Paid $370 on amount owed on cleaning supplies. Paid $3 per share to buy 300 shares of Clean Sweep common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 23 Billed customers $5,330 for cleaning services performed through February 20 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20) 25 Collected $3,100 cash from customers billed on February 16 27 Paid $270 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.35 per share John Wiley & All Rights Reserved. A DIVIsion of John Version 4.24.3.3 1202 AM Type here to search

Explanation / Answer

For 2nd Journal Entry , no journal entry is required as clean sweep only expects that nothing would be recoverable $180, but it hasnt concluded the fact.

For 3rd Journal Entry, the allowance for doubtful debts should be 3% of Acc Rec(7070+4710)=353 $

For 4th journal Enrty the monthly depreciaton is to de made: 1080 is annual depreciation , so monthly dep would be 1080=$90

For 5th journal Entry the monthly insurance exp is to be made: 2760 is the qtrly prepaid advance so for monthly insurance expense it should be 2760/3months= $920

For 7th journal entry since 4 week cleaning services are to be provided, the service revenue should be recorded only when the entire services have been provided based on accrual concept.

For the 8th entry , only one week wage is left to be accruei.e 23 Feb to 27 thefeb. Therefore the wages to be recorded for 1 week is 600 $ X 4 people X1 week= $ 2400

For 9th Entry if the 6% is interest for the 2 year period i.e. 24 months then the interest for 1 month should be 9000X 0.06X 1/24 months= $22.5

For 10th entry the income statement is to be drawn:

Service Revenue (10170+4710)=14880

less Supplies Exp 720

Less Salary & Wages 4800+2400=7200

Less insurance Exp 920

Less Bad Debt 353

Less Dep 90

Less Interest Exp 22.5

Profit= 5575

Income Tax is 200% of 5575 =1115

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