5 Comprehensive Accounting Cycle Review 11-02 (Part Level Submission) Karen Noonan opened Tamarisk Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 Issued 4,500 shares of Tamarisk Cleaning Services common stock for $11,700. Each share has a $1.50 par. 1 Borrowed $7,200 on a 2-year, 6% note payable. 1 Paid $8,120 to purchase used floor and window cleaning equipment from a company going out of business ($4,340 was for the floor equipment and $3,780 for the window equipment), 1 Paid $200 for February Internet and phone services. 3 Purchased cleaning supplies for $880 on account. 4 Hired 4 employees. Each will be paid $430 per 5-day work week (Monday-Friday). Employees will begin working Monday, February 9. Obtained insurance coverage for $8,860 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $2,215 cash for the first quarter of coverage. 5 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 $3,560 cash 16 Billed customers $3,510 for deaning services performed through February 13, 2022. 17 Received $504 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 $140.) 18 Paid $270 on amount owed on cleaning supplies 20 Paid $3 per share to buy 270 shares of Tamarisk Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 23 Billed customers $3,870 for cleaning services performed through February 20 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). 25 Collected $2,250 cash from customers billed on February 16, 27 Paid $200 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0,30 per share, Date Account Titles and Explanation Debit Credit Feb. 1 Cash 11700 Common Stock 6750 Paid-in Capital in Excess of Par Value-Common St 4950 (To record issuance of common stock in excess of par) Feb. 1 Cash 7200 7200 Notes Payable (To record purchase of notes payable) Feb. 1 Equipment 8120 Cash 8120 (To record purchase of equipment) Feb. 1 Utilities Expense 200 Cash 200 (To record payment of internet and phone services) S Feb. 37 Supplies 880 Accounts Payable 880 Feb. 4 No Entry No Entry US Febs Prepaid Insurance 2215 Cash 2215 (To record payment of insurance) Fabis Cash 3560 Loss on Disposal of plant Assets 220 3780 Equipment (To record sale of equipment) Feb. 167 Accounts Receivable 3510 Service Revenue 3510 > S Feb. 17 Cash 504 > Unearned Service Revenue 504 > 7 Feb. 18 Accounts Payable 270 Cash 270 > Feb. 20 Treasury Stock 810 Cash 810 Feb. 23 Accounts Receivable 3870 > Service Revenue 3870 > Feb. 24 V Salaries and Wages Expense 3440 Cash 3440 > Feb. 25 Cash 2250 > > Accounts Receivable 2250 Feb. 27 7 Prepaid Expenses 200 Cash 200 Feb. 28 Cash Dividends 1269 Cash 1269 (b) Your answer is correct. Post to the ledger accounts. (Post entries in the order of journal entries presented above.) Cash 2/1 C 11700 2/1 2215 2/17 504 2/18