April Pristine created Aprils Fresh Cleaning on July 1, 2019. Aprils Fresh Cleaning began selling vacuums on October 1, 2022. The company extended credit terms of 2/10, n/30, FOB shipping point, to all customers who purchase vacuums. However, no discounts are available on cleaning services. To accommodate the growth, April Pristine modified the accounting system to set up subsidiary accounts for each customer and vendor. She added a fifth digit with a decimal point to accounts receivable to allow for each customer to have an individual account. All of these accounts are subsidiary accounts to accounts receivable. She also added a fifth digit with a decimal point to accounts payable to allow for each vendor to have an individual account. All of these accounts are subsidiary accounts to accounts payable. The growth of April Fresh Cleaning Services has made managing the business overwhelming. In January of 2023, you have been hired by April Pristine to be the internal accountant for April Fresh Cleaning Services. You will need to begin by continuing the bookkeeping where April left off. She has completed all transactions through September 30, 2022. You will need to complete all of the transactions for the 4th quarter of 2022. The chart of accounts (see next page) includes the account number used for each account and current balances as of September 30, 2022.

Number Account Name Debit Credit

1010 Cash $48,200

1200.01 Accounts Receivable - Sana Sciences Corp. $0

1200.02 Accounts Receivable - Spruce Springclean $0

1200.03 Accounts Receivable - Curl Up & Dye Salon $0

1200.04 Accounts Receivable - Hot Dog Bun Museum $0

1200.05 Accounts Receivable - Norse Co. $2,500

1200.06 Accounts Receivable - Pi Co. $0

1200.07 Accounts Receivable - Sam and Ella's Restaurant $5,800

1200.08 Accounts Receivable - Jitters Coffee Shop $3,500

1300 Merchandise Inventory $0

1400 Cleaning Supplies $50,000

1450 Office Supplies $45,000

1510 Prepaid Insurance $1,600

1540 Prepaid Rent $20,825

1710 Cleaning Equipment $50,000

1720 Accumulated Depreciation - Cleaning Equipment $11,250

1760 Office Equipment $8,000 1770 Accumulated Depreciation - Office Equipment $400

2000.01 Accounts Payable - Zerger Office Products $30,000

2000.02 Accounts Payable - You Hoser Corp. $0

2100 Wages Payable $600 2200 Interest Payable $0

2250 Utilities Payable $0 2300 Income Taxes Payable $0

2400 Unearned Cleaning Service Revenue $1,500

2800 Notes Payable $0

3100 Common Stock $73,000

3300 Retained Earnings $68,675

3900 Dividends $75,000

4100 Cleaning Services Revenue $183,475

4400 Sales $0

4410 Sales Returns and Allowances $0

4420 Sales Discounts $0

5000 Cost of Goods Sold $0

6010 Advertising Expense $28,000

6050 Bad Debt Expense $1,200

6100 Cleaning Supplies Expense $0

6210 Depreciation Expense - Cleaning Equipment $0

6220 Depreciation Expense - Office Equipment $0

6270 Income Tax Expense $0

6280 Insurance Expense $0

6310 Interest Expense $0

6610 Mileage Expense $640

6680 Office Supplies Expense $0

6720 Rent Expense $0

6730 Repairs and Maintenance Expense $1,425

6780 Telephone and Internet Expense $1,500

6810 Utilities Expense $1,850

6850 Wages Expense $23,500

6870 Waste Removal $360

8100 Gain on Sales of Assets $0

8600 Loss on Sales of Assets $0

Important notes about the accounting system: The company uses accrual-based accounting. April Fresh Cleaning is a calendar year company. You must use the chart of accounts provided. No accounts may be added to the chart of accounts. The company uses a perpetual inventory system. All purchase discounts are recorded at the time of payment. The company uses the gross method to account for sales discounts. All sales discounts are recorded at the time of payment. Sales returns and allowances are recorded only at the time of occurrence. They are not estimated at the end of the period. The company records sales returns and sales allowances in account 4401, Sales Returns and Allowance. Assume all returned merchandise inventory is in excellent condition and is restocked for resale. The company uses the direct write-off method to account for uncollectible debts. Charlotte Addison is the only employee of the company. All payrolls will be recorded at the gross amount by debiting Wages Expense. For this project, all payroll taxes (employee as well as employer) will be ignored.

Aprils Fresh Cleaning transactions for October through December:

Oct. 2 The company paid cash to Charlotte Addison for five days' work at the rate of $150 per day. Four of the five days relate to wages payable that were accrued in the prior month and recorded on September 30th.

Oct. 3 April Pristine invested an additional $25,000 cash in the company in exchange for more common stock. Oct. 5 The company purchased $6,000 of vacuums for resale from You Hoser Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated October 7.

Oct. 6 The company paid $200 for telephone and internet services.

Oct. 8 The company received $2,500 cash from Norse Co. as full payment on its account for cleaning services.

Oct. 9 The company paid $2,000 for advertising in a local newspaper.

Oct. 12 The company completed a five-day project for Sana Sciences Corp. and billed it $5,500, which is the total price of $7,000 less the advance payment of $1,500 that was received and recorded on September 26th.

Oct. 15 The company sold vacuums with a retail value of $5,200 and a cost of $3,560 to the Hot Dog Bun Museum.

Oct. 16 The company paid $500 cash for freight charges on the merchandise purchased on October 5.

Oct. 18 The company received $3,000 cash from Pi Co. for cleaning services provided.

Oct. 19 The company paid You Hoser Corp. for the invoice dated October 5.

Oct. 20 The company gave a price reduction (allowance) of $500 to the Hot Dog Bun Museum and credited the Hot Dog Bun Museum's accounts receivable for that amount.

Oct. 21 The company received the balance due from the Hot Dog Bun Museum, net of the discount and the allowance.

Oct. 23 The company received $3,500 cash from Jitters Coffee Shop as full payment on its account for cleaning services.

Oct. 24 The company purchased $9,000 of vacuums from You Hoser Corp. with terms of 1/10, n/30, FOB destination, invoice dated October 24.

Oct. 26 The company returned defective vacuums to You Hoser Corp. due to product defects. The defective vacuums cost $600 and Aprils Fresh Cleaning received a reduction in the amount owed for the October 24th purchase.

Oct. 27 Due to delinquency, the company wrote of the amount due from Sam and Ellas Restaurant, Inc. as uncollectable. Oct. 30 The company paid cash to Charlotte Addison for 10 days' work at $150 per day.

Nov. 1 The company paid $2,750 cash to Westgate Mall for three months of rent in advance.

Nov. 2 The company paid You Hoser Corp. for the balance due, net of the cash discount, less the $600 credit from merchandise returned on October 26.

Nov. 4 The company paid $1,000 cash to Facebook for an advertisement to appear on November 6 only.

Nov. 6 The company paid $200 for telephone and internet services.

Nov. 7 The company purchased $12,700 of cleaning supplies from Zerger Office Products on credit with terms of n/30, FOB destination.

Nov. 8 The company paid $2,000 for advertising in a local newspaper.

Nov. 9 The company received the balance due from Sana Sciences Corp. for fees billed on October 12.

Nov. 11 The company purchased $15,000 of cleaning equipment. The company paid $3,000 down and signed 5% note payable that is due in 180 days.

Nov. 12 The company billed Norse Co. for $6,000 of cleaning services provided. Payment is due in 30 days.

Nov. 14 The company paid a $4,800 cash dividend to April Pristine.

Nov. 15 The company received $2,000 from Sam and Ellas restaurant for partial payment of amount that had previously been written off.

Nov. 17 The company billed Curl Up and Dye Salon for $7,000 of cleaning services provided. Payment is due in 30 days.

Nov. 20 The company paid the full amount due of $42,700 to Zerger Office Products, consisting of amounts created on September 15 (of $30,000) and November 7.

Nov. 24 The company sold vacuums with a $2,675 cost for $3,500 on credit to Pi Co., invoice dated November 24.

Nov. 26 The company paid cash to Charlotte Addison for eight days' work at $150 per day.

Comprehensive Project Part 7

Nov. 27 The company reimbursed April Pristine $215 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."

Dec. 2 The company purchased $25,000 of cleaning supplies from Zerger Office Products on credit with terms of n/30, FOB destination.

Dec. 3 The company received 7,000 cash from Curl Up and Dye Salon as full payment on its account for cleaning services.

Dec. 6 The company paid $200 for telephone and internet services.

Dec. 10 The company paid $950 cash for minor repairs to the company's cleaning equipment.

Dec. 11 Sold $4,000 of cleaning equipment that had $1,000 of accumulated depreciation to Grime Scene Investigation for $2,500 in cash.

Dec. 14 The company received $5,350 cash from Jitters Coffee Shop for cleaning services provided.

Dec. 17 The company paid $2,500 for advertising in a local newspaper.

Dec. 20 The company billed Curl Up and Dye Salon for $9,000 of cleaning services provided. Payment is due in 30 days.

Dec. 24 The company sold vacuums with a $2,025 cost for $2,800 on credit to Spruce Springclean Services, invoice dated December 24.

Dec. 27 The company billed Pi Co. for $2,000 of cleaning services provided. Payment is due in 30 days.

Dec. 29 The company received the balance due from Pi Co. for merchandise sold on November 24.

Comprehensive Project Part 8

Dec. 30 The company paid $120 for trash pickup.

Dec. 31 The company reimbursed April Pristine $130 cash for business automobile mileage. The company recorded the reimbursement as "Mileage Expense."

*Directions, record of the transactions for April Fresh Cleaning Services from October 1, 2022 through December 31, 2022. Once you have finished recording the journal entries, you need to post all of the journal entries to the Ledger.*