Cissi Jean Oliver opened Cleaning Angels, Inc. on September 4, 2018. During September, the following transactions were completed:

Sept 4 Issued 5,000 shares of Cleaning Angels common stock for $13,000. Each share has a $1.00 par.

Sept 4 Borrowed $8,000 on a 2-year, 9% note payable.

Sept 4 Paid $9,020 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $4,200 for the window equipment).

Sept 4 Paid $220 for September Internet and phone service.

Sept 4 Purchased cleaning supplies for $980 on account.

Sept 4 Hired 4 employees. Each will be paid $480 per 5-day work week (Monday-Friday). Employees will begin working on Monday, September 10.

Sept 5 Obtained insurance coverage for $9,840 per year. Coverage runs from September 1, 2018, through August 31, 2019. Cissi Jean paid $2,460 cash for the first quarter of coverage.

Sept 5 Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Cissi Jean sold the window cleaning equipment for $4,000 cash.

Sept 17 Billed customers $3,900 for cleaning services performed through September 14, 2018.

Sept 17 Received $600 from a customer for 4 weeks of cleaning services to begin on September 24, 2018.

Sept 18 Paid $300 on amount owed on cleaning supplies.

Sept 24 Billed customers $4,300 for cleaning services performed through September 21.

Sept 24 Paid cash for employees wages for 2 weeks (September 10-14 and 17-21).

Sept 25 Collected $2,500 cash from customers billed on September 17.

Sept 27 Paid $220 for Internet and phone services for October.

Sept 27 Declared and paid a cash dividend of $0.20 per share.

Sept 28 Received notice that a customer who was billed $200 for services performed September 10th has filed for bankruptcy. Cleaning Angels, Inc does not expect to collect any portion of this outstanding receivable. (Cleaning Angels will follow the GAAP Guidelines for uncollectible accounts.)

Adjustment Data:

a. Services performed for customers through September 28, 2018, but unbilled and uncollected were $3,800.

b. Cleaning Angels used the allowance method to estimate bad debts. Cleaning Angels estimates that 3% of its month-end receivables will not be collected.

c. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $500 salvage value.

d. Record 1 month of insurance expense.

e. An inventory count shows $400 of supplies on hand at September 30th.

f. One week of services were performed for the customer who paid in advance on September 17th.

g. Accrue for wages owed through September 28, 2018.

h. Accrue for interest expense for one month.

i. Cissi Jean estimates a 20% income tax rate. (Hint: Prepare an income statement up to income before taxes to help with the income tax calculation.)

Instructions:

1) Journalize the September transactions.

2) Post to general ledger accounts.

3) Prepare a Trial Balance as of September 30, 2018.

4) Journalize the adjusting entries. (Round all amounts to whole dollars.)

5) Post adjusting entries to the general ledger accounts.

6) Prepare an Adjusted Trial Balance.

7) Journalize the closing entries.