Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bill's cleaning service had the following transactions Borrowed $45,000 from the bank signing a note payable for the company. Paid cash for land $45,000 Performed

image text in transcribed
Bill's cleaning service had the following transactions Borrowed $45,000 from the bank signing a note payable for the company. Paid cash for land $45,000 Performed service for a customer and was paid $5,000 cash Purchased supplies on account for $2,000 Performed more service for a customer on account $3,000 Paid $1, 200 of the amount from number 4 Paid cash for the following: Salaries $3,000, rent. $1, 500 and Telephone $500 Received $1, 500 from the amount in number 5. Received $200 utility bill that will be paid next week Bought a company truck for $40,000 by paying $4,000 cash and the rest as a note payable Completed more service for a customer for an amount of $10,000 The customer paid cans of 5,000 and the rest will be paid next month Customer paid us 3,000 today. We will do the work next month. Adjustment entries at the end of the month A count of supplies on hand shows we have $1, 200 of supplies Depreciation of the truck is $100 for the month Salaries have been earned but not paid In the amount of $600 Record one month of interest on the $45,000 note. Interest is at 9%/yr

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions