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B Bill opened Bill's Rug Cleaning. Inc. ( BRCI ) on January 1 , 2 3 2 3 The following transactions occurred D H during
B
Bill opened Bill's Rug Cleaning. Inc.BRCI on January The following transactions occurred
D
H
during the company's first year.
K
N
Cells
M
BRCI issued $ of common stock for $ in cash from its only investor, Bill
Purchased a used truck for $ paying $ in cash and signing a one year,
note payable for the balance
Purchased cleaning supplies on account for $
Paid $ for a oneyear insurance policy.
Billed customers $ for cleaning services.
Paid $ of the amount owed for cleaning supplies
Paid $ for employee salaries.
Collected $ from customers billed on May
Paid gas and oil $
Declared and paid a $ dividend.
Instruictions:
a Journalize and post all transactions
b Prepare a unadjusted trial balance as of December
c Journalize and post the following adjusting entries for the year ended December
Earned but unbilled fees at December were $
Depreciation on the truck is $ per month
Expired insurance for the year.
On December there were $ of cleaning supplies on hand.
As of December em ployees were due $ in salaries that were yet unpaid
Accrued interest expense on the note payable.
d Prepare an adjusted trial balance as of December
e Prepare the income statement, statement of retained earnings, and the balance sheet for the year
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