Question

PTUDlen. Laura Eddy opened Eddy's Carpet Cleaners on March 1. During March, the following transactions were completed. Mar 1 3 14 18 Invested $10,000 cash in the business. Purchased used truck for $6,000, paying $3,000 cash and the balance on account. Purchased cleaning supplies for $1,200 on account. Pald $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. Withdrew $700 cash for personal use. 20 21 28 31 31 The chart of accounts for Eddy's Carpet Cleaners contains the following accounts: 101 Cash 112 Accounts Receivable 128 Cleaning Supplies 130 Prepaid Insurance 157 Equipment 158 Accumulated Depreciation-Equipment 201 Accounts Payable 212 Salaries Payable 301 L. Eddy, Capital 306, L. Eddy, Drawing 350 Income Summary 400 Service Revenue 633 Gas & Oil Expense 634 Cleaning Supplies Expense 711 Depreciation Expense 722 Insurance Expense 726 Salaries Expense Instructions: 1 Journalize the March entries. 2 Post to the accounts in the general ledger. 3 Complete the work sheet trial balance. 4 Enter the adjusting entries: Adjusted Trial Balance totals are $20,950. a) Earned but unbilled revenue at March 31 was $700. b) Depreciation on equipment for the month was $250. c) One-twelfth of the insurance expired. d) An inventory count shows $400 of cleaning supplies on hand at March 31. e) Accrued but unpaid employee salaries were $500. 5 Complete the work sheet. Net Income is $4,350. Prepare an income statement, a statement of owner's equity, and a classified balance sheet (Total assets are $16,350). 7 Journalize the adjusting and closing entries. Post them. (8 Prepare the post-closing trial balance. Post Closing Trial Balance totals are $16,600.

I need help with the journal entries, adjusting entries, classified balance sheet and the post closing balance

Answer 1

Eddy's Carpet Cleaners Journal Enteries Date Particulars Mar-01 Cash a/c Dr. To L.Eddy, Capital (Capital Invested) Debit in $ Credit in $ 10000 10000 6000 Mar-01 Equipment a/c To Cash To Accounts Payable (Truck purchased) 3000 3000 1200 Mar-03 Cleaning Supplies a/c Dr. To Accounts Payable (Supplies on account) 1200 1200 Mar-05 Prepaid Insurance a/c Dr. To Cash (1 year insurance paid) 1200 4800 Mar-14 Accounts Receivable a/c Dr. To Service Revenue (Customers billed) 4800 2000 Mar-18 Accounts Payable a/c Dr. To Cash (Creditors paid) 2000 Dr. 1800 Mar-20 Salaries Expense a/c To Cash (Salary paid) 1800 1400 Mar-21 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 1400 2500 Mar-28 Accounts Receivable a/c Dr. To Service Revenue (Customers billed) 2500 Dr. 200 Mar-31 Gas & Oil Expense a/c To Cash (Expenses paid) 200 700 Mar-31 L.Eddy, Drawing a/c Dr. To Cash (Cash withdrawn fro personal use) 700

Adjusting Enteries Date Particulars Mar-31 Accounts Receivable a/c Dr. To Service Revenue (Customers billed) Debit in $ Credit in $ 700 700 Dr. 250 Mar-31 Depreciation Expense a/c To Accum. Depre - Equip (To record depreciation) 250 Dr. 100 Mar-31 Insurance Expense a/c To Prepaid Insurance (Insurance expensed) 1200 / 12 100 Dr. 800 Mar-31 Cleaning Supplies Expense a/c To Cleaning Supplies (Supplies expensed) 800 Dr. 500 Mar-31 Salaries Expense a/c To Salary Payable (Salary accrued) 500 Closing Enteries Date Particulars Mar-31 Income Summary a/c Dr. To Gas & Oil Expense To Cleaning Supplies Expense To Depreciation Expense To Insurance Expense To Salaries Expense (Expense accounts closed) Debit in $ Credit in $ 3650 200 800 250 100 2300 Dr. 8000 Mar-31 Service Revenue a/c To Income Summary (Revenue accounts closed) 8000 Dr. 4350 Mar-31 Income Summary a/c To L.Eddy, Capital (Profits transferred) 4350 Dr. 700 Mar-31 L.Eddy, Capital a/c To L.Eddy, Drawing (Drwaings charged) 700

Worksheet For the period ending March 31 Unadjusted Adjustments Adjusted Post Closing Acct. No. Particulars Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 101 Cash 2500 2500 2500 112 Accounts Receivable 5900 700 6600 6600 128 Cleaning Supplies 1200 800 400 400 130 Prepaid Insurance 1200 100 1100 1100 157 Equipment 6000 6000 6000 158 Accum. Depre - Equip 250 250 250 201 Accounts Payable 2200 2200 2200 212 Salary Payable 500 500 500 301 L.Eddy, Capital 10000 10000 13650 306 L.Eddy, Drawing 700 700 400 Service Revenue 7300 8000 633 Gas & Oil Expense 200 200 634 Cleaning Supplies Expense 800 800 711 Depreciation Expense 250 250 722 Insurance Expense 100 100 726 Salaries Expense 1800 500 2300 Totals 19500 19500 2350 2350 20950 20950 16600 16600 700 8000 Statement of Income For the period ending March 31 Service Revenue Less: Gas & Oil Expense Cleaning Supplies Expense Depreciation Expense Insurance Expense Salaries Expense Net Income 200 800 250 100 2300 3650 4350 Statement of Owner's Equity For the period ending 31.5.2017 L.Eddy, Capital 10000 Net Income 4350 14350 L.Eddy, Drawing -700 13650

Balance sheet As at March 31 Assets Current Assets Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Liabilities 2500 Accounts Payable 2200 6600 Salary Payable 500 2700 400 1100 10600 Non Current Assets Equipment Accum. Depre - Equip Total Assets 6000 -250 Owner's Equity 5750 Owner's Capital 16350 Total Liabilities & Equity 13650 16350