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Consider the following transactional data for the month of Nov, 2020 for Crystal Clear Cleaning. Nov 1 Stockholders contributed $35,000 cash and a truck, with
Consider the following transactional data for the month of Nov, 2020 for Crystal Clear Cleaning. Nov 1 Stockholders contributed $35,000 cash and a truck, with a market value of $7,000, to the business in exchange for common stocks. Nov 2 The business paid $2,000 to Pleasant Properties for November to February rent in advance. Nov 3 Paid $1,800 for a business insurance policy for the term November 1, 2020 through October 31, 2021. Nov 4 Paid $1,200 for a computer and printer with estimated life of 2 years Nov 5 Purchased office supplies on account, $220. Nov 6 Purchased on account an industrial vacuum cleaner costing $2,000 with estimated life of 2 years. The invoice is payable Nov 25. Nov 7 Performed cleaning services on account in the amount of $3,800. Nov 8 Received $300 for services rendered on November 7. Nov 9 Received $12,000 for a 1-year contract beginning November 16 for cleaning Nov 10 Borrowed $96,000 @12 % interest rate from bank by signing a note payable for 5 years. Nov 11 Paid salaries to employees, $350. Nov 12 Paid $500 for advertising Nov 13 Paid tax expense of $200 Nov 14 Consumed office supplies costing $100 from the stock purchased on Nov 05. Nov 15 Received a utility bill for $250 with a due date of Dec 4, 2020. Nov 16 Provided cleaning services of worth $10,000 as per contract signed on Nov 09. Nov 17 Received $900 on account for services performed on November 7. Nov 18 Paid $1,000 on account for vacuum cleaner purchased. Nov 28 Declared dividends of $200 Nov 30 Paid dividends declared on Nov. 28. Instructions a. Prepare journal entries for the month of Nov, 2020 (40) b. Prepare necessary adjusting entries on Nov 30, 2020 based on the information in the transactions dated: Nov 02, 03, 04, 06, 10 (20) C. Post all entries from the journal to relevant ledger accounts (60) d. Prepare adjusted trial balance (20) e. Prepare income statement for the month ended on Nov 30, 2020 (25) f. Prepare statement of retained earnings for the month ended on Nov 30, 2020 (10) 8. Prepare balance sheet as on Nov 30, 2020 (25)
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