Question

Karen Noonan opened Larkspur Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 i 1 3 4 5 5 Issued 3,800 shares of Larkspur Cleaning Services common stock for $9,880. Each share has a $1.50 par. Borrowed $6,080 on a 2-year, 6% note payable. Paid $6,860 to purchase used floor and window cleaning equipment from a company going out of business ($3,660 was for the floor equipment and $3,200 for the window equipment). Paid $170 for February Internet and phone services. Purchased cleaning supplies for $740 on account. Hired 4 employees. Each will be paid $360 per 5-day work week (Monday-Friday). Employees will begin working Monday, February 9. Obtained insurance coverage for $7,480 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $1,870 cash for the first quarter of coverage. 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 $3,000 cash. Billed customers $2,960 for cleaning services performed through February 13, 2022. Received $396 from a customer for 4 weeks of cleaning services to begin February 21, 2022. (By paying in advance, this customer received 10% off the normal weekly fee of $110.) Paid $230 on amount owed on cleaning supplies. Paid $3 per share to buy 230 shares of Larkspur Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. Billed customers $3,270 for cleaning services performed through February 20. Paid cash for emplovees' wages for 2 weeks (February 9-13 and 16-20). Collected $1,900 cash from customers billed on February 16. Paid $170 for Internet and phone services for March. Declared and paid a cash dividend of $0.20 per share. 16 17 18 23 24 25 27 28

Answer 1

Credit $ 9,880 $ 6,080 $ 6,860 $ 170 $ 740 $ 1,870 $ 3,200 Date Accounts Title Debit Feb-01 Cash $ 9,880 Common Stock Feb-01 Cash $ 6,080 Notespayable Feb-01 Floor Equipment $ 3,660 Window Equipment $ 3,200 Cash Feb-01 Internet and Phone Services $ 170 Cash Feb-03 Cleaning Supplies $ 740 Accounts Payable Feb-05 Prepaid Insurance $ 1,870 Cash Feb-05 Cash $ 3,000 Loss on Sale of Equipment $ 200 Window Equipment Feb-16 Accounts Receivable $ 2.960 Service Revenue Feb-17 Cash $ 396 Unearned Service Revenue Feb-18 Accounts payable $ 230 Cash Feb-20 Treasury Shares $ 690 Cash Feb-23 Accounts Receivable $ 3.270 Service Revenue Feb-24 Wages Expenses $ 2.880 Cash Feb-25 Cash $ 1,900 Accounts Receivable Feb-27 Advance Internet and Phone Services | $ 170 Cash Feb-28 Dividend 714 Cash $ 2,960 $ 396 $ 230 230*3 $ 690 $ 3,270 2*360*4 $ 2,880 $ 1,900 $ 170 0.2*(3800-230) $ 714