Comprehensive Accounting Cycle Review 11-02 (Part Level Submission) Karen Noonan opened Skysong Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 1 3 Issued 5,500 shares of Skysong Cleaning Services common stock for $14,300. Each share has a $1.50 par. Borrowed $8,800 on a 2-year, 6% note payable. Paid $9,920 to purchase used floor and window cleaning equipment from a company going out of business ($5,300 was for the floor equipment and $4,620 for the window equipment), Paid $240 for February Internet and phone services. Purchased deaning supplies for $1,080 on account. Hired 4 employees. Each will be paid $530 per 5-day work week (Monday-Friday). Employees will begin working Monday, February 9. Obtained insurance coverage for $10,820 per year. Coverage runs from February 1, 2022. through January 31, 2023. Karen paid $2,705 cash for the first quarter of coverage. Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window cleaning equipment for $4,350 cash. Billed customers $4,290 for cleaning services performed through February 13, 2022 Received $612 from a customer for 4 weeks of deaning services to begin February 21, 2022 (By paying in advance, this customer received 10% off the normal weekly fee of $170.) Paid $330 on amount owed on cleaning supplies. Pald $3 per share to buy 330 shares of Skysong Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. Billed customers $4,730 for cleaning services performed through February 20. Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). Collected $2,750 cash from customers billed on February 16. Paid $240 for Internet and phone services for March. Declared and paid a cash dividend of $0.25 per share. 16 20 24 25 27 28 (d) your answer is partially correct. Try again. Journalize the following adjustments. (Credit account titles are automatically indented when amount is entered. Do not in in the order presented in the problem. Round answers to o decimal place . SZZ Services performed for customers through February 27, 2022, but unbilled and uncollected were $4,180. Received notice that a customer who was billed $220 for services performed February 10 has filed for bankruptcy, Skysong Cleaning Services does not expect to collect any portion of this outstanding receivable. Skysong Cleaning Services uses the allowance method to estimate bad debts, Skysong Cleaning Services estimates that 3% of its month-end receivables will not be collected. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $550 salvage value. Record 1 month of insurance expense. An Inventory count shows $440 of supplies on hand at February 28. One week of services were performed for the customer who paid in advance on February 17 Accrue for wages owed through February 28, 2022. Accrue for interest expense for 1 month. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes to help with the income tax calculation.) taxes" to help with the income tax calculation.) No. Account Titles and Explanation 1. Accounts Receivable Service Revenue 2. Allowance for Doubtful Accounts Accounts Receivable 220 - Bad Debt Expense Allowance for Doubtful Accounts 534 4. Depreciation Expense Accumulated Depreciation Equipment 5. Prepaid Insurance 1803 Insurance Expense dlNITOMI TIDIDIINID TUTTA TOTA LA LLUITA CONTATO T 1803 6. Supplies Expense Supplies 7. Unearned Service Revenue | Service Revenue 8. Salaries and Wages Expense Salaries and Wages Payable 9. Interest Expense Interest Payable 10. Income Tax Expense Income Taxes Payable