Question

Stockholders invested $10,000 cash in the business in exchange for common stock. **IF YOU ARE NOT ABLE TO ANSWER ALL QUESTION, DON'T BOTHER :) **

                 1   Purchased used truck for $6,000, paying $3,000 cash and the balance on account.

                 3   Purchased cleaning supplies for $1,200 on account.  

                 5   Paid $1,200 cash on a 1-year insurance policy effective March 1.

               14   Billed customers $4,800 for cleaning services.

               18   Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies.

               20   Paid $1,800 cash for employee salaries.

               21   Collected $1,400 cash from customers billed on March 14.

               28   Billed customers $4,500 for cleaning services.

               31   Paid $500 for the monthly gasoline bill for the truck.

               31   Paid a $700 cash dividend.

Use ONLY these accounts:  The chart of accounts for this business contains:  Cash,   Accounts Receivable,  Supplies, Prepaid Insurance,  Equipment,  Accum Deprec—Equipment,  Accounts Payable,  Salaries & Wages Payable,  Common Stock,  Retained Earnings,  Dividends,  Income Summary,  Service Revenue,  Supplies Expense,  Gasoline Expense,  Deprec Expense,  Insurance Expense,  Salaries & Wages Expense.

Instructions

(a)  Journalize and post the March transactions. **Use above account names ONLY**

Account Titles Credit Date Mar. 1 20

(c)  Enter the following adjustments on the worksheet and complete the worksheet.

(1)  Unbilled and uncollected revenue for services performed at March 31 was $500.

(2)  Depreciation on equipment for the month was $300.

(3)  One-twelfth of the insurance expired.

(4)  An inventory count shows $250 of cleaning supplies on hand at March 31

(5)  Accrued but unpaid employee salaries were $550.

(d)  Prepare an income statement for March

(d2) prepare a CLASSIFIED Balance Sheet at March 31

Answer 1

Journal Entries
Date	Particulars			Debit	Credit
1-Mar	Cash			$ 10,000.00
	To Common Stock				$ 10,000.00
1-Mar	Equipment			$   6,000.00
	To Cash				$   3,000.00
	To Accounts Payable				$   3,000.00
3-Mar	Supplies			$   1,200.00
	To Accounts Payable				$   1,200.00
5-Mar	Prepaid Insurance			$   1,200.00
	To Cash				$   1,200.00
14-Mar	Accounts Receivable			$   4,800.00
	To Service Revenue				$   4,800.00
18-Mar	Accounts Payable			$   2,000.00
	To Cash				$   2,000.00
20-Mar	Salaries and Wages Expense			$   1,800.00
	To Cash				$   1,800.00
21-Mar	Cash			$   1,400.00
	To Accounts Receivable				$   1,400.00
28-Mar	Accounts Receivable			$   4,500.00
	To Service Revenue				$   4,500.00
31-Mar	Gasoline Expense			$      500.00
	To Cash				$      500.00
31-Mar	Dividend			$      700.00
	To Cash				$      700.00

			Trial Balance			Adjustments			Income Statement			Balance Sheet
			Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Cash			$   2,200.00									$   2,200.00
Accounts Receivable			$   7,900.00			$    500.00						$   8,400.00
Supplies			$   1,200.00				$    950.00					$      250.00
Prepaid Insurance			$   1,200.00				$    100.00					$   1,100.00
Equipment			$   6,000.00									$   6,000.00
Accounts Payable				$   2,200.00									$   2,200.00
Common Stock				$ 10,000.00									$ 10,000.00
Dividends			$       700.00									$      700.00
Service Revenue				$   9,300.00			$    500.00			$ 9,800.00
Gasoline Expense			$       500.00						$    500.00
Salaries and Wages Expense			$   1,800.00			$    550.00			$ 2,350.00
Totals			$ 21,500.00	$ 21,500.00
Depeciation Expense						$    300.00			$    300.00
Accumulated Depreciation							$    300.00						$      300.00
Insurance Expense						$    100.00			$    100.00
Supplies Expense						$    950.00			$    950.00
Salaries and Wages Payable							$    550.00						$      550.00
Totals						$ 2,400.00	$ 2,400.00					$ 18,650.00	$ 13,050.00
Net Income									$ 5,600.00				$   5,600.00
Totals												$ 18,650.00	$ 18,650.00

Income Statement
Revenues
Service Revenue				$   9,800.00
Expenses
Gasoline Expense			$      500.00
Salaries and Wages Expense			$   2,350.00
Depreciation Expense			$      300.00
Insurance Expense			$      100.00
Supplies Expense			$      950.00
Total expense				$   4,200.00
Net Income				$   5,600.00

Balance Sheet
Current Assets
Cash			$   2,200.00
Accounts Receivable			$   8,400.00
Supplies			$      250.00
Prepaid Insurance			$   1,100.00
				$ 11,950.00
Property, Plant and Equipment
Equipment			$   6,000.00
Accumulated Depreciation			$     (300.00)	$   5,700.00
Total Assets				$ 17,650.00
Liabilities and Stockholder's Equity
Accounts Payable			$   2,200.00
Salaries and Wages Payable			$      550.00
				$   2,750.00
Stockholder's Equity
Common Stock			$ 10,000.00
Retained Earnings			$   4,900.00
				$ 14,900.00
Total Liability and Equity				$ 17,650.00