(a) Journalize the February transactions. Karen Noonan opened Larkspur, Inc. on
ID: 2592990 • Letter: #
Question
(a)
Journalize the February transactions.
Karen Noonan opened Larkspur, Inc. on February 1, 2017. During February, the following transactions were completed.Feb. 1 Issued 4,000 shares of Clean Sweep common stock for $13,260. Each share has a $1.50 par. 1 Borrowed $8,000 on a 2-year, 6% note payable. 1 Paid $9,200 to purchase used floor and window cleaning equipment from a company going out of business ($5,120 was for the floor equipment and $4,080 for the window equipment). 1 Paid $220 for February Internet and phone services. 3 Purchased cleaning supplies for $1,000 on account. 4 Hired 4 employees. Each will be paid $490 per 5-day work week (Monday– Friday). Employees will begin working Monday, February 9. 5 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 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 equipment for $4,030 cash. 16 Billed customers $3,980 for cleaning services performed through February 13, 2017. 17 Received $540 from a customer for 4 weeks of cleaning services to begin February 21, 2017. 18 Paid $310 on amount owed on cleaning supplies. 20 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 $4,390 for cleaning services performed through February 20. 24 Paid cash for employees’ wages for 2 weeks (February 9–13 and 16–20). 25 Collected $2,550 cash from customers billed on February 16. 27 Paid $220 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.15 per share.
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Dr Cr Feb 01 Cash Dr 13,260.00 To common stock = 4000 * 1.50 6,000.00 To Aditional paid in capital = 13260 - 6000 7,260.00 Feb 01 Cash DR 8,000.00 To Note Payable 8,000.00 Feb 01 Floor Equipment dr 5,120.00 Window equipment dr 4,080.00 To Cash 9,200.00 Feb 01 Internet and phone expense DR 220.00 To cash 220.00 Feb 03 Supplies DR 1,000.00 To Accounts payable 1,000.00 Feb 05 Prepaid Insurance DR 2,760.00 To Cash 2,760.00 Feb 05 Cash DR 4,030.00 Loss on equipment DR = 4080 - 4030 50.00 To Window equipment 4,080.00 Feb 13 Wages expense DR 1,960.00 To Wages payable =490*4 1,960.00 Feb 16 Accounts receivable dr 3,980.00 To service revenue 3,980.00 Feb 17 Cash DR 540.00 To revenue received in advance 540.00 Feb 18 Account payable Dr 310.00 To Cash 310.00 Feb 20 Wages expense DR 1,960.00 To Wages payable =490*4 1,960.00 Feb 20 Treasury stock dr 900.00 To Cash 900.00 Feb 23 Account receivable Dr 4,390.00 To Revenue 4,390.00 Feb 24 Wages payable Dr 3,920.00 To cash = 1960 + 1960 3,920.00 Feb 25 Cash Dr 2,550.00 To Accounts receivable 2,550.00 Feb 27 Wages expense DR 1,960.00 To Wages payable =490*4 1,960.00 Feb 27 Prepaid Phone and interent services 220.00 To Cash 220.00 Feb 28 Dividend Dr 600.00 To Cash = 4000*.15 600.00 Feb 28 Insurance expense Dr 920.00 To prepaid insurance= 2760/3 920.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.