ACR4.2 Lars Linken opened Lars Cleaners on March 1, 2020. During March, the following transac- tions were completed. Issued 10,000 shares of common stock for $15,000 cash. 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. Purchased used truck for $8,000 cash. Mar. 1 1 1 Paid $1,500 cash to cover rent from March 1 through May 31. Paid $2,400 cash on a 6-month insurance policy effective March 1 Purchased cleaning supplies for $2,000 on account. Billed customers $3,700 for cleaning services performed. Paid $500 on amount owed on cleaning supplies. Paid $1,750 cash for employee salaries. Collected $1,600 cash from customers billed on March 14. Billed customers $4,200 for cleaning services performed. 2 3 6 14 18 20 21 28 Paid $350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 31 Declared and paid a $900 cash dividend. The chart of accounts for Lars Cleaners contains the following accounts: Cash, Accounts Receivable, Sup- plies, 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, De- preciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense. Instructions a. Journalize the March transactions. e standavd ledger ACCOUNt OVia worksneet and coMplete b. Post to the ledger accounts. c. Prepare a trial balance adeh nework snee d. Journalize the following adjustments. 1. Services performed but unbilled and uncollected at March 31 were $200. 2. Depreciation on equipment for the month was $250. 3. One-sixth of the insurance expired. 4. An inventory count shows $280 of cleaning supplies on hand at March 31 5. Accrued but unpaid employee salaries were $1,080. 6. One month of the prepaid rent has expired. 7. 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 interest.) e. Post adjusting entries to the T-accounts. f. Prepare an adjusted trial balance. f. Tot. adj. trial balance $31,960 g. Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31 g. Tot. assets $24,730 h. Journalize and post closing entries and complete the closing process. i. Prepare a post-closing trial balance at March 31