Ewok-Ackbar opened Ewok’s Carpet Cleaners on March 1. During March, the following transactions were completed.

Mar. 1 Issued $10,000 of common stock for $10,000 cash.

1 Purchased used truck for $6,000, paying $4,000 cash and the balance on account.

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

5 Paid $1,800 cash on 1-year insurance policy effective March 1.

14 Billed customers $2,800 for cleaning services.

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

20 Paid $1,500 cash for employee salaries.

21 Collected $1,600 cash from customers billed on July 14.

28 Billed customers $3,500 for cleaning services.

31 Paid gas and oil for month on truck $200.

31 Declared and paid a $900 cash dividend.

The chart of accounts for Ewok’s Carpet Cleaners contains the following accounts: Cash, Accounts Receivable, Cleaning Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Salaries Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Gas & Oil Expense, Cleaning Supplies Expense, Depreciation Expense, Insurance Expense, Salaries Expense.

Instructions

(a) Journalize the March transactions.

(b) Post to the ledger accounts. (Use T accounts.)

(c) Prepare a trial balance at March 31.

(d) Journalize the following adjustments.

1. Earned but unbilled revenue at March 31 was $600.

2. Depreciation on equipment for the month was $250.

3. One-twelfth of the insurance expired.
4. An inventory count shows $400 of cleaning supplies on hand at March 31.
5. Accrued but unpaid employee salaries were $500.

(e) Post adjusting entries to the T accounts.
(£) Prepare an adjusted trial balance.
(g) Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31.
(h) Journalize and post closing entries and complete the closing process.
(i) Prepare a post-closing trial balance at July 31.