Comprehensive Accounting Cycle Review 11-2 (Part Level Submission) Karen Noonan

Question

Comprehensive Accounting Cycle Review 11-2 (Part Level Submission) Karen Noonan opened Marin Inc. on February 1, 2017. During February, the following transactions were completed. Feb. 1 Issued 4,000 shares of Clean Sweep common stock for $11,180. Each share has a $1.50 par. 1 Borrowed $9,000 on a 2-year, 6% note payable 1 Paid $7,760 to purchase used floor and window cleaning equipment from a company going out of business 1 Paid $190 for February Internet and phone services. 3 Purchased cleaning supplies for $840 on account. 4 ($3,960 was for the floor equipment and $3,800 for the window equipment) Hired 4 employees. Each will be paid $410 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9 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 $3,400 cash 16 Billed customers $3,350 for cleaning services performed through February 13, 2017 17 Received $504 from a customer for 4 weeks of cleaning services to begin February 21, 2017. 18 Paid $260 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 23 24 25 27 management goals. The shares will be held as treasury shares. Billed customers $3,700 for cleaning services performed through February 20. Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20) Collected $2,150 cash from customers billed on February 16 Paid $190 for Internet and phone services for March. Declared and paid a cash dividend of $0.35 per share.

Explanation / Answer

I'm providing only the entries where you getting wrong Journal Date Account Head & Description Debit Amount Credit Amount Feb 4 No entry required Feb 5 Cash 3400 Loss on disposal of Plant asset 400 Equipment 3800 (to record the sale of equipment Feb 24 Salaries and wages expenses (410*2) 820 Cash 820 (to record salaries and wages paid) Feb 28 Dividends (0.35*4000) 1400 Cash 1400 (to record dividends paid)

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