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*AP4-5A
Laura Eddy opened Eddy's Carpet Cleaners on March 1. During March, the following transactions were completed. Mar. 1 1 3 5 14 18 20 21 28 31 31 Issued stock for $10,000 in cash. Purchased used truck for $6,000, paying $3,000 cash and the balance on account. Purchased cleaning supplies for $1,200 on account. Paid $1,200 cash on one-year insurance policy effective March 1. Billed customers $4,800 for cleaning services. Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies. Paid $1,800 cash for employee salaries. Collected $1,400 cash from customers billed on March 14. Billed customers $2,500 for cleaning services. Paid gas and oil for month on truck $200. Declared and paid a $700 cash dividend.
The chart of accounts for Eddy's Carpet Cleaners contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Common Stock, No. 320, Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense Journalize the March transactions. Use page J1 for the journal. (List amounts from largest to smallest eg 10, 5, 3, 2. If amounts are the same list alphabetically.) General Journal Date Mar. 1 Description Debit J1 Credit
Mar. 1
Mar. 3
Mar. 5
Mar. 14
Mar. 18
Mar.20
Mar. 21
Mar. 28
Mar. 31
Mar. 31
Prepare a trial balance at March 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet. (If answer is zero, please enter 0. Do not leave any fields blank. Ro 1. 2. 3. 4. 5. Earned but unbilled revenue at March 31 was $700. Depreciation on equipment for the month was $250. One-twelfth of the insurance expired. An inventory count shows $400 of cleaning supplies on hand at March 31. Accrued but unpaid employee salaries were $500. EDDY'S CARPET CLEANERS Worksheet For the Month Ended March 31, 2008 Adjusted Trial Balance Cr. Dr. Cr.
Account Titles Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Equipment Accounts Payable Common stock Dividends Service Revenue Gas & Oil Expense Salaries Expense Totals Depreciation
Adjustments Dr.
Depreciation Expense Accumulated Depreciation Insurance Expense Cleaning Supplies Expense Salaries Payable Totals Net Income Totals Prepare the income statement and retained earnings statement for March and a classified balance sheet at March 31. (List amounts from largest to smallest eg 10, 5, 3, 2. List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2. If answer is zero, please enter 0. Do not leave any fields blank.) EDDY'S CARPET CLEANERS Income Statement For the Month Ended March 31, 2008 Revenues $ Expenses $
Total expenses Net income EDDY'S CARPET CLEANERS Retained Earnings Statement For the Month Ended March 31, 2008 $ Add: $
Less: $
Current Assets
Total current assets Property, plant and equipment $ Less: Total assets Liabilities and Stockholders' Equity $ $
Current liabilities
Total stockholders' equity Total liabilities and stockholders' equity Journalize adjusting entries. Use page J2 for the journal. General Journal Date Mar. 31 Description Debit J2 Credit $
Mar. 31
(To adjust salaries.) Journalize the closing entries. Use page J3 for the journal. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) General Journal J3 Date Description/Account Debit Credit Mar. 31
(To close dividends to capital.) Post the March transactions and adjusting entries using the three-column form of account. Post the closing entries and complete the closing process. (If answer is zero, please enter 0. Do not leave any fields blank.) Cash Date Mar. 1 1 5 18 20 21 31 31 Accounts Receivable Date Explanation Mar. 14 21 28 31 Adjusting Explanation Ref. J1 J1 J1 J1 J1 J1 J1 J1 No. 112 Balance Debit Credit No. 101 Balance
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Accounts Payable Date Explanation Mar. 1 3 18 Salaries Payable Date Explanation Mar. 31 Adjusting
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No. 332
Date Mar. 31 31
Explanation Adjusting
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Prepare a post-closing trial balance at March 31. (If answer is zero, please enter 0. Do not leave any fields blank.) EDDY'S CARPET CLEANERS Post-Closing Trial Balance March 31, 2008 Account Titles Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salaries Payable Common stock Retained Earnings $ $ $ Trial Balance Dr. $ Cr.
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