1. 2. 3. 4. 5. Services performed for customers through February 27,2022, but unbilled and uncollected were $3.420. Received notice that a customer who was billed $180 for services performed February 10 has filed for bankruptcy. Tamarisk Cleaning Services does not expect to collect any portion of this outstanding receivable. Tamarisk Cleaning Services uses the allowance method to estimate bad debts. Tamarisk Cleaning Services estimates that of its month-end receivables will not be collected. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $450 salvage value. Record 1 month of insurance expense. An inventory count shows $360 of supplies on hand at February 28. One week of services were performed for the customer who paid in advance on February 17. Accrue for wages owed through February 28, 2022. Accrue for interest expense for 1 month. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.) 6. 7. 8. 9. 10. Journalize closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Feb. 28 (To close revenue account) Feb. 28 (To close expense accounts) Feb. 28 (To close net income / (loss)) Feb. 28 (To close dividends) TAMARISK CLEANING SERVICES IN Balance Sheet February 28, 2022 Assets Current Asset Cash Accounts Receivable Les V: Allowance for Doubtful Account Prepaid Expenses Prepaid Insurans Supplies Total Current Assis Property Plant and Equipment Equipment Lea V: Accumulated Depreciation Equipment Liabilities and Stockholders' Equ Current Labels Accounts Payable Salaries and Wages Payable Incercat Payable QUITO Income Tax Payable Uneamed Service Revenue Total Current Liables Longterm Liables Notes Payable Total Liabilities Stockholders Equity Common Stock 6750 Pald-in Capital In Excess of Per Value-Common Stock 4950 Retained Earning Las V: Treasury Stock Total Stoholders Equity Total Llabilities and Stockholders Equity Assets 8690 8370 251 8119 i inne 200 1477 360 $ 18846 4340 81 4259 23105 Liabilities and Stockholders' Equity 610 1720 Code 36 708 378 3452 7200 10652 6750 4950 11700 1563 13263 810 12459 23105 1. 2. 3. 4. 5. Services performed for customers through February 27,2022, but unbilled and uncollected were $3.420. Received notice that a customer who was billed $180 for services performed February 10 has filed for bankruptcy. Tamarisk Cleaning Services does not expect to collect any portion of this outstanding receivable. Tamarisk Cleaning Services uses the allowance method to estimate bad debts. Tamarisk Cleaning Services estimates that of its month-end receivables will not be collected. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $450 salvage value. Record 1 month of insurance expense. An inventory count shows $360 of supplies on hand at February 28. One week of services were performed for the customer who paid in advance on February 17. Accrue for wages owed through February 28, 2022. Accrue for interest expense for 1 month. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.) 6. 7. 8. 9. 10. Journalize closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Feb. 28 (To close revenue account) Feb. 28 (To close expense accounts) Feb. 28 (To close net income / (loss)) Feb. 28 (To close dividends) TAMARISK CLEANING SERVICES IN Balance Sheet February 28, 2022 Assets Current Asset Cash Accounts Receivable Les V: Allowance for Doubtful Account Prepaid Expenses Prepaid Insurans Supplies Total Current Assis Property Plant and Equipment Equipment Lea V: Accumulated Depreciation Equipment Liabilities and Stockholders' Equ Current Labels Accounts Payable Salaries and Wages Payable Incercat Payable QUITO Income Tax Payable Uneamed Service Revenue Total Current Liables Longterm Liables Notes Payable Total Liabilities Stockholders Equity Common Stock 6750 Pald-in Capital In Excess of Per Value-Common Stock 4950 Retained Earning Las V: Treasury Stock Total Stoholders Equity Total Llabilities and Stockholders Equity Assets 8690 8370 251 8119 i inne 200 1477 360 $ 18846 4340 81 4259 23105 Liabilities and Stockholders' Equity 610 1720 Code 36 708 378 3452 7200 10652 6750 4950 11700 1563 13263 810 12459 23105
