Accounting Cycle Problem Instructions:

Wash issues financial statements quarterly (every three months). Please follow each step of the accounting cycle, starting with journalizing the transactions in the general journal, and ending with writing the closing trial balance. You will need to prepare an Income Statment, Statement of Shareholders' Equity, and a Balance Sheet. You do NOT need to prepare a Statement of Cash Flows.

On April 1st, 2014, Wash & Go Car Wash received $50,000 cash from the stockholders and in turn issued common stock to them.

On April 3rd, Wash & Go Car Wash paid $40,000 cash for land.

On April 3rd, Wash & Go paid cash of $3,700 for cleaning supplies.

On April 6th, Wash & Go performed services for clients and received cash of $7,000.

On April 6th, Wash & Go performed services for UPS on account. UPS did not pay immediately, so Wash & Go billed UPS for $3,000.

On April 30th, Wash & Go paid $1,500 for the following expenses: equipment rent - $1,100; and utilities - $400. Use one journal entry to show these itemized expenses.

On May 15th, Stacey Smith, the major stockholder of Wash & Go, remodeled her personal residence.

On June 1st, Wash & Go collected $1,000 cash on account from the client in transaction 5.

On June 1st, a local branch of Fed Ex delivery pays Wash & Go $6,000 for a six month pre-paid subscription to their car wash service.

On June 1st, Wash & Go prepays three months of store rent at $3,000 to add onto their existing storefront by renting a small space next door.

On June 7th, Wash & Go sold land for its cost of $22,000, receiving cash.

On June 26th, Wash & Go paid its shareholders cash dividends of $2,100.

On June 30th, at the end of the accounting period, $700 of cleaning supplies remain.

Wash & Go Car Wash is subject to a 15% income tax rate. It will be paid sometime after this accounting period. PLEASE DO: 1. Journal Entries 2. General ledger 3. Unadjusted trial balance 4. Ajusting Entries 5. Adjusted Trial balance 6. Financial Statements 7. Closing entries 8. Closing Trial balance