Preparation of T-account entries, adjusted trial balance, income statement, and balance sheet. The unadjusted, preclosing trial balance of Kleen Cleaners, Inc., at February 28, Year 6, appears in Exhibit 3.14. The firm has not made adjusting entries or closed its books since December 3 1 , Year 5. A summary of the transactions for the month of March, Year 6, follows.

(1) Sales: for cash, $15,000; on account, $4,900

(2) Collections on account. $1 1,200

(3) Purchases of outside work (cleaning done by wholesale cleaners) on account,

$700

(4) Purchases of supplies on account, $3,100

(5) Payments on account, $4,600

(6) March rent paid, $800

(7) March salaries and wages paid, $10,930 Adjusting entries required at the end of March relate to the following:

(8) Supplies used (for the quarter), $5,610

(9) Depreciation (for the quarter), $2,560 (10) Bills received but not recorded or paid by the end of the month: advertising, $300; maintenance on equipment, $80: power, gas, and water, $420 (11) Insurance expired (for the quarter), $300

a. Open T-accounts and enter the trial balance amounts.

b. Record the transactions for the month of March and adjusting entries at the end of March in the T-accounts, opening additional T-accounts as needed. Crossreference the entries using the numbers of the transactions above.

c. Prepare an adjusted, preclosing trial balance at March 31, Year 6, and an income statement for the three months ending March 3 1 , Year 6.

d. Enter closing entries in the T-accounts using an Income Summary account.

e. Prepare a balance sheet as of March 31, Year 6.

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EXHIBIT 3.14 KLEEN CLEANERS, INC. Unodjusted, Preclosing Trial Balonce February 28, Year 6 Problem 38) Cash Accounts Receivable Supplies on Hand.. Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable 3,400 15,200 4,800 1,200 65.000 $ 9,680 7,900 Common Stock 20,000 Retained Earnings 40,000 Sales Revenue 46,060 Salaries and Wages Expense 26,600 Cost of Outside Work 2,040 Advertising Expense 400 Repairs Expense 500 Rent Expense 1.200 Power, Gas, and Water Expense 880 Supplies Expense.. Depreciation Expense Miscellaneous Expense 2,420 $123,640 $123,640