Julie Molony opened Valet Cleaners on March 1, 2007. During March, the fol- Complete all steps in lowing transactions were completed. accounting cycle.

Mar. 1 _ Issued 10,000 shares of common stock for $15,000 cash. POA ano Cs 1 Purchased used truck for $8,000, paying $5,000 cash and the balance on GLS|

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 $3,200 for cleaning services.

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

31 Paid $350 for gas and oil used in truck during month.

31 Declared and paid a $900 cash dividend.

The chart of accounts for Valet 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 $280 of cleaning supplies on hand at March 31. 5. Accrued but unpaid employee salaries were $830.

(e) Post adjusting entries to the T accounts.

(f) Prepare an adjusted trial balance.

(f) Tot. adj. trial

(g) Prepare the income statement and a retained earnings statement for March and a balance $26,280 classified balance sheet at March 31. (g) Tot. assets $20,880

(h) Journalize and post closing entries and complete the closing process.

(i) Prepare a post-closing trial balance at March 31.