Question

son March 1, 2022. During March, the following transactions were completed. GP Pro Inc. opened Prochners on 10.000 shares of common stock for $15.000 rach ed $6,000 cash by signing a 6-month, 6%, 56,000 note payable. Interest will be paid the first day of each subsequent month 1 Purchased used truck for $8,000 cash 2 Paid $1,500 cash to cover rent from March 1 through May 31 3 Paid $2,400 cash on a 6-month insurance policy effective March 1 6 Purchased cleaning supplies for $2,000 on account 14 Billed customers $3,700 for cleaning services performed 18 Paid $500 on amount owed on cleaning supplies 20 Paid $1,750 cash for employee salaries 21 Collected $1,600 cash from customers billed on March 14 28 Billed customers $4,200 for cleaning services performed 31 Paid $350 for gas and oil used in truck during month (use Maintenance and Repairs Expense) 31 Declared and paid a $900 cash dividend The chart of accounts for ProCleaners contains the following accounts 11 Cash 32 Retained Earnings 12 Accounts Receivable 33 Dividends 13 Supplies 34 Income Summary 14 Prepaid Insurance 41 Service Revenue 15 Prepaid Rent 51 Maintenance and Repairs Expense 16 Equipment 52 Supplies Expense 17 Accumulated Depreciation-Equipment 53 Depreciation Expense 21 Accounts Payable 54 Insurance Expense 22 Salaries and Wages Payable 55 Salaries and Wages Expense 23 Notes Payable 56 Rent Expense 24 Interest Payable 57 Interest Expense 31 Common Stock Instructions Journalize the March transactions (page 1) Post to the ledger accounts Prepare an unadjusted trial balance at March 31 Journalize the following adjustments (Page 2) A Services performed but unbilled and uncollected at March 31 was $200 B Depreciation on equipment for the month was $250 C One-sixth of the insurance expired D An inventory count shows $280 of cleaning supplies on hand at March 31 E Accrued but unpaid employee salaries were $1,080 F One month of the prepaid rent has expired G One month of interest expense related to the note payable has accrued and will be paid April 1 Post adjusting entries to the ledger accounts Prepare an adjusted trial balance Prepare a 10 column Worksheet viii Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31 Journalize (page 3) and post closing entries and complete the closing process Prepare a post-closing trial balance at March 31
just from v. to x

Answer 1

Answer-iv

General Journal Credit ($) Debit (S) Account Titles Date Account receivable 200 Service revenue 200 Depreciation expense Accumulated depreciation-Equipment В 250 250 Insurance expense (2,400/ 6) Prepaid insurance 400 400 Supplies expense Supplies 1720 1720 Salaries and wages expense Salaries and wages payable E 1080 1080 Rent expense (1,500 Prepaid rent 3) 500 500 Interest expense (6,000 x 6% x 1/12) Interest payable G 30 30

Answer-v

GENERAL LEDGER Notes payable Debit Cash Common stock Credit Balance $ 15,000 $ 21,000 8,000 S 13,000 1,500 11,500 2,400 9,100 Debit Balance Balance $ 6,000 $6,000 Credit Credit Debit Date Date Date $15,000 $15,000 $ 15,000 $ 6,000 Mar.01 Mar.01 Mar.01 Mar.01 $ Prepaid insurance Debit $ 2,400 Prepaid rent Debit Mar.01 Credit Balance $ 1,500 500 1,000 Balance $ Date Credit Mar.02 Date $ $ 1,500 $ 2,400 Mar.03 Mar.02 Mar.03 400 S $ 500 $ $ 8,600 Mar.31 2,000 Mar.18 Mar.31 $ 1,750 $ 6,850 Mar.20 $ 1,600 $ Supplies 8,450 Equipment Mar.21 Balance $ 8,000 Debit Credit Balance $ $ 8,100 Date Debit Credit 350 Date Mar.31 900 $ 7,200 $ 8,000 $ $2,000 $ 2,000 Mar.31 Mar.06 Mar.01 $ 1,720 $ 280 Mar.31 Account payable Credit Service revenue Account rece ivable Debit Balance $ 3,700 $ 1,600 2,100 $ 6,300 6,500 Debit Credit S 3,700 $ $ 4,200 $ 200 S Balance Balance Debit Credit Date Date Date 2,000 2,000 $ 3,700 $ 3,700 7,900 Mar.06 Mar.14 Mar.14 $ $ Mar.28 1,500 500 Mar.21 Mar.18 $ 4,200 $ 200 Maintenance and repair expense $ 8,100 Mar.28 Mar.31 Mar.31 Salaries and wages expense Debit $ 1,750 $1,080 Dividend Credit Balance Debit Balance Credit Balance Credit Debit Date Date Date $ 1,750 $ $ $ $ $ 350 350 900 900 Mar.20 Mar.31 Mar.31 2,830 Mar.31

Accumulated depreciation-equipment Balance $ 250 $ Depreciation expense Debit Insurance expense Balance Debit Credit Credit Debit Credit Balance Date Date Date $ $ $ $ 250 250 250 400 400 Mar.31 Mar.31 Mar.31 Salaries and wages payable Balance $ 1,080 $ 1,080 Supplies expense Credit Rent expense Credit Balance Debit Credit Debit Date Debit Balance Date Date $ 1,720 $ 1,720 $ $ 500 500 Mar.31 Mar.31 Mar.31 Interest payable Interest expense Balance Credit Debit Date Credit Balance Date Debit $ 30 30 S $ $ 30 30 Mar.31 Mar.31

Answer-vi

Adjusted Trial Balance Debit Credit Account Name Cash $ 7,200 Common stock $ 15,000 Notes payable Equipment Prepaid rent Prepaid insurance Supplies Account payable Account receivable Service revenue Salaries and wages expense 6000 8000 1000 2000 280 1500 6500 8100 2830 Maintenance and repair expense Dividend Depreciation expense Accumulated depreciation-equipment 350 900 250 250 Insurance expense 400 Supplies expense Salaries and wages payable Rent expense 1720 1080 500 Interest expense 30 Interest payable 30 $31,960 $ 31,960 Total

Answer-vii

ACCOUNTING WORKSHEET Adjusted Journal Unadjusted Trial Adjusted Trial Balance sheet Income Statement of owner's equity Balance Entries Balance Statement Credit Debit Debit Credit Credit Debit Credit Credit Account Debit Debit Cash $ $ $ 7,200 7,200 7,200 $ $ $ 15,000 15,000 Common stock 15,000 Notes payable 6000 6000 6000 Equipment 8000 8000 8000 Prepaid rent 1500 500 1000 1000 2000 Prepaid insurance 2400 400 2000 Supplies 2000 1720 280 280 Account payable 1500 1500 1500 Account receivable 6300 200 6500 6500 Service revenue 8100 7900 200 8100 Salaries and wages expense 1750 2830 1080 2830 Maintenance and repair expense 350 350 350 900 Dividend 900 900 Depreciation expense 250 250 250 Accumulated depreciation-equipment 250 250 250 Insurance expense Supplies expense Salaries and wages payable 400 400 400 1720 1720 1720 1080 1080 1080 Rent expense 500 500 500 Interest expense 30 30 30 Interest payable 30 30 30 30,400 (30,400) $ (4,180)$ $(31,960) $ Net Income $ Totals 24,980$ (8,100) $ $ (23,860) Total 4,180 31,960 6,980 (1,120) 8,100 $ $ (1,120) (8,100) $ (24,980) 24,980 $

General Journal Account Titles Date Credit ($) Debit ($) 200 Account receivable Service revenue 200 250 Depreciation expense Accumulated depreciation-Equipment 250 400 Insurance expense (2,400 / 6) Prepaid insurance Supplies expense Supplies 1720 1720 1080 Salaries and wages expense Salaries and wages payable 1080 500 Rent expense (1,500/3) Prepaid rent 500 Interest expense (6,000 x 6% < 1/12) Interest payable 30 T30

GENERAL LEDGER Common stock Debit Credit $ 15,000 Date Date Mar.01 Balance $15,000 Notes payable Debit Credit $ 6,000 Balance $ 6,000 Date Mar.01 Mar. 01 Mar.01 Mar.02 Mar.03 Mar.18 Mar.20 Mar.21 Mar.31 Mar.31 Cash Debit Credit $ 15,000 $ 6,000 $ 8,000 $ 1,500 $ 2,400 $ 500 $ 1,750 $ 1,600 $ 350 $ 900 Balance $ 15,000 $ 21,000 $ 13,000 $ 11,500 $ 9,100 $ 8,600 $ 6,850 $ 8,450 $ 8,100 $ 7,200 Mar.02 Mar.31 Prepaid rent Debit Credit Balance $ 1,500 $ 1,500 $ 500 $ 1,000 Date Mar.03 Mar.31 Prepaid insurance Debit Credit Balance $ 2,400 $ 2,400 $ 400 $ 2,000 Date Mar.01 Equipment Debit Credit $ 8,000 Balance $ 8,000 Date Mar.06 Mar.31 Supplies Debit Credit $ 2,000 $ 1,720 Balance $ 2,000 $ 280 Date Mar.06 Mar. 18 Account payable Debit Credit Balance $ 2,000 $ 2,000 $ 500 $ 1,500 Account receivable Date Debit Credit Balance Mar. 14 $ 3,700 $ 3,700 Mar.21 $ 1,600 $ 2,100 Mar.28 $ 4,200 $ 6,300 Mar.31 $ 200 $ 6,500 Maintenance and repair expense Date Debit Credit Balance Mar.31 $ 350 $ 350 Date Mar. 14 Mar.28 Mar.31 Service revenue Debit Credit $ 3,700 $ 4,200 $ 200 Balance $ 3,700 $ 7,900 $ 8,100 Date Mar.20 Mar.31 Salaries and wages expense Debit Credit Balance $ 1,750 $ 1,750 $ 1,080 $ 2,830 Date Mar.31 Dividend Debit Credit $ 900 Balance $ 900

Date Mar.31 Depreciation expense Debit Credit $ 250 Balance $ 250 Accumulated depreciation-equipment Date Debit Credit Balance Mar.31 $ 250 $ 250 Date Mar.31 Insurance expense Debit Credit $ 400 Balance $ 400 Supplies expense Debit Credit $ 1,720 Date Mar.31 Date Salaries and wages payable ! Date Debit Credit Balance Mar.31 $ 1,080 $ 1,080 Balance $ 1,720 Debit Rent expense Debit Credit $ 500 Balance $ 500 Mar 31 Date Mar.31 Interest expense Debit Credit $ 30 Balance 30 Date Mar.31 Interest payable Debit Credit $ 30 Balance $ 30

Credit Debit 7,200 $ 15,000 6000 8000 1000 2000 280 1500 6500 8100 Adjusted Trial Balance Account Name Cash : Common stock Notes payable Equipment Prepaid rent Prepaid insurance Supplies Account payable Account receivable Service revenue Salaries and wages expense Maintenance and repair expense Dividend Depreciation expense Accumulated depreciation-equipment Insurance expense Supplies expense Salaries and wages payable Rent expense Interest expense Interest payable Total $ 2830 350 900 250 250 400 1720 1080 500 30 30 31,960 31,960 $