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ABC Carpet Cleaners had been operating for several years. On March 1, the company had the following account balances: Cash Rs. 65,000; Accounts Receivable Rs.
- ABC Carpet Cleaners had been operating for several years. On March 1, the company had the following account balances:
- Cash Rs. 65,000;
- Accounts Receivable Rs. 30000;
- Equipment Rs. 30,000;
- Accounts Payable Rs. 50,000;
- Bank Loan Rs. 20000;
- Common Shares Rs. 50000
- Retained Earnings Rs.57,000.
The following transactions occurred during the month of March.
March 1 Purchased (and used) cleaning supplies for cash: Rs. 6000.
March 2 Paid off an amount of Rs. 25000 that was owed from February.
March 4 Completed a major cleaning job. Billed Rs. 30,000 but did not collect
March 9 Purchased a new Super brand vacuum for Rs. 16,000 on account. Payment is due in 30 days.
March 11 Collected amount owed to us from February.
March 15 Completed a cleaning job. Billed Rs.10,000, collected half.
March 16 Paid employees’ salaries of Rs.25,000.
March 19 Paid Rs. 1500 to repair a broken vacuum.
March 22 Received and paid electricity bill: Rs.4000.
March 24 Received a telephone bill: Rs. 500, did not pay.
March 28 Collected money from the March 4 cleaning job.
March 29 Completed major cleaning job. Billed Rs.7,000, payment is due on April 29.
March 31 Paid employees’ salaries of Rs. 2,500.
March 31 Paid interest of Rs. 750 on the bank loan.
March 31 Shareholders took a dividend totaling Rs. 7000.
Required:
a.) Record all necessary journal entries based on the transactions above
b.) Post the transactions to T-Accounts.
c.) Prepare a trial balance dated March 31.
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Step: 1
a Recording the necessary journal entries based on the transactions March 1 Debit Cleaning Supplies Expense Rs 6000 Credit Cash Rs 6000 March 2 Debit Accounts Payable Rs 25000 Credit Cash Rs 25000 Mar...Get Instant Access to Expert-Tailored Solutions
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