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Accounting Cycle Review 4-2 (Part Level Submission) Lars Linken opened Sheffield Cleaners on March 1, 2017. During March, the following transactions were completed. Mar. 1
Accounting Cycle Review 4-2 (Part Level Submission)
Lars Linken opened Sheffield Cleaners on March 1, 2017. During March, the following transactions were completed.
Mar. 1 | Issued 10,800 shares of common stock for $16,200 cash. | ||
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1 | Borrowed $6,600 cash by signing a 6-month, 6%, $6,600 note payable. Interest will be paid the first day of each subsequent month. | ||
1 | Purchased used truck for $8,600 cash. | ||
2 | Paid $1,500 cash to cover rent from March 1 through May 31. | ||
3 | Paid $2,700 cash on a 6-month insurance policy effective March 1. | ||
6 | Purchased cleaning supplies for $2,160 on account. | ||
14 | Billed customers $4,000 for cleaning services performed. | ||
18 | Paid $540 on amount owed on cleaning supplies. | ||
20 | Paid $1,890 cash for employee salaries. | ||
21 | Collected $1,730 cash from customers billed on March 14. | ||
28 | Billed customers $4,540 for cleaning services performed. | ||
31 | Paid $380 for gas and oil used in truck during month (use Maintenance and Repairs Expense). | ||
31 | Declared and paid a $970 cash dividend. |
(a) Journalize the March transactions. (b) Post to the ledger accounts. (Use T-accounts.) (c) Prepare a trial balance at March 31.
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