ACCOUNTING CYCLE MINI PROJECT. photos are in chronoligcal order.
CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK Accounting Cycle Review 4-2 a-f, g1-93, h1-h2, Lars Linken opened Lars Cleaners on March 1, 2019. During March, the following transactions were completed. Mar. 1 Issued 9,000 shares of common stock for $14,400 cash. 1 Borrowed $6,000 cash by signing a 6-month, 6%, $6,000 note payable. Interest will be paid the first day of each subsequent month. 1 Purchased used truck for $7,800 cash. 2 Pald $1,500 cash to cover rent from March 1 through May 31. 3 Paid $2,280 cash on a 6-month insurance policy effective March 1. 6 Purchased cleaning supplies for $2,000 on account. 14 Billed customers $3,500 for cleaning services performed. 18 Paid $500 on amount owed on cleaning supplies. 20 Paid $1,750 cash for employee salaries. 21 Collected $1,400 cash from customers billed on March 14. 28 Billed customers $4,000 for cleaning services performed. 31 Paid $330 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a $900 cash dividend. The chart of accounts for Lars Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense. Journalize the March transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.) Cash Accounts Receivable Supplies Prepare a trial balance at March 31. LARS CLEANERS Trial Balance March 31, 2019 Debit Credit Journalize the following adjustments. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) 1. Services performed but unbilled and uncollected at March 31 were $200. 2. Depreciation on equipment for the month was $240. 3. One-sixth of the insurance expired. 4. An inventory count shows $250 of cleaning supplies on hand at March 31. 5. Accrued but unpaid employee salaries were $1,100. 6. One month of the prepaid rent has expired. One month of interest expense related to the note payable has accrued and will be paid April 1. (Hint: Use the formula from Illustration 3-17 to compute 7 interest.) Post adjusting entries to the T-accounts. (Post entries in the order of journal entries presented in the previous paru) 3/1 3/1 7,800 1,500 2,280 500 3/21 1,750 Cash 14,400 3/1 6,000 3/2 1,400 3/3 3/18 3/20 3/31 3/31 6,740 Accounts Receivable 3,500 3/21 4,000 330 900 3/31 Bal. 3/14 1,400 3/28 Supplies 2,000 Prepaid Rent Prepare an adjusted trial balance. LARS CLEANERS Trial Balance March 31, 2019 Debit Credit Prepare the income statement for March LARS CLEANERS Income Statement Prepare a retained earnings statement for March. (List Items that increase retained earnings first.) LARS CLEANERS Retained Earnings Statement Prepare a classified balance sheet at March 31. (List Current Assets in order of liquidity.) LARS CLEANERS Balance Sheet Assets Journalize the closing entries. (Credit account titles are automatically indented when the 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 Mar. 31 (To dose revenue account) Mar. 31 (todose expense accounts) Post closing entries and complete the closing process. (Post entries in the order of journal entries presented in the previous part. is zero please enter on normal balance side.) Cash Prepare a post-closing trial balance at March 31. LARS CLEANERS Post-Closing Trial Balance March 31, 2019 Debit Credit
