FALL 2021 ACCT 2013 Principles of Financial Accounting Practice Set Problem Worth 150 points, 15% of overall grade and a requirement to pass the class. Due Date: After we complete Chapter 4 to be submitted on the day of Exam 1. Start working on this problem as soon as possible. Late work will not be accepted. This practice set problem and accompanying working papers for the solutions are uploaded in My Accountinglab, under Document Sharing tab. When you print, choose the option "print entire workbook". No other working papers will be accepted except those provided by the professor. All solutions must be properly identified with headings, account names and account numbers balances and other pertinent Information Mr. Kahlil Gibran opened L-Town Carpet Cleaners Inc. on August 1, 2021. During August, the following transactions were completed. Jan. 1 Invested $55,000 cash in the business as startup capital. 1 Purchased used truck for $9,360, paying $2,000 cash and the balance on account 3 Purchased cleaning supplies for $2,100 on account 5 Paid $1,920 cash on one-year insurance policy effective August 1. 14 Billed customers $4,300 for cleaning services 18 Paid $2,800 cash on amount owed on truck and $650 on amount owed on cleaning supplies 20 Paid $2,200 cash for employee salaries. 21 Collected $ 3,800 cash from customers billed on August 14. 28 Billed customers $3,200 for cleaning services. 31 Paid gas and oil for month on truck $370. 31 Withdrew $1,000 cash for owner's personal use. 31 Hired a part-time office receptionist; salary is $1,800 per month 31 Signed a contract to maintain and clean carpets at Lawton City Hall, $2,100 per month The chart of accounts for L-Town Carpet Cleaners Inc. contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment-Truck, No. 158 Accumulated Depreciation - Equipment-Truck, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Kahlil Gibran, Capital, No. 320 Kahlil Gibran, Drawings, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, No. 726 Salaries Expense. Instruction: Submit neat, legibly handwritten in blue ink, properly filled out and compiled working papers. Arranged the papers properly by page numbers. a) Journalize and post the August transactions. Use page J1 for the journal and the four-column form of account showing account titles and account numbers. Skip one space between journal entries. b) Prepare a trial balance at August 31 on a work sheet. c) Enter the following adjustments on the work sheet and complete the work sheet. 1. Earned but unbilled revenue at August 31 was $780. 2. Depreciation on equipment for the month was $220. 3. One-twelfth of the insurance expired. 4. An inventory count shows $520 of cleaning supplies on hand at August 31. 5. Accrued but unpaid employee salaries were $500. d) Journalize and post adjusting entries. Use page 12 for the journal. e) Prepare the income statement and the owner's equity statement for August and a classified balance sheet as of August 31. f) Journalize and post-closing entries and complete the closing process. Use page 13 for the journal. B) Prepare a post-closing trail balance as of August 31. FALL 2021 ACCT 2013 Principles of Financial Accounting Practice Set Problem Worth 150 points, 15% of overall grade and a requirement to pass the class. Due Date: After we complete Chapter 4 to be submitted on the day of Exam 1. Start working on this problem as soon as possible. Late work will not be accepted. This practice set problem and accompanying working papers for the solutions are uploaded in My Accountinglab, under Document Sharing tab. When you print, choose the option "print entire workbook". No other working papers will be accepted except those provided by the professor. All solutions must be properly identified with headings, account names and account numbers balances and other pertinent Information Mr. Kahlil Gibran opened L-Town Carpet Cleaners Inc. on August 1, 2021. During August, the following transactions were completed. Jan. 1 Invested $55,000 cash in the business as startup capital. 1 Purchased used truck for $9,360, paying $2,000 cash and the balance on account 3 Purchased cleaning supplies for $2,100 on account 5 Paid $1,920 cash on one-year insurance policy effective August 1. 14 Billed customers $4,300 for cleaning services 18 Paid $2,800 cash on amount owed on truck and $650 on amount owed on cleaning supplies 20 Paid $2,200 cash for employee salaries. 21 Collected $ 3,800 cash from customers billed on August 14. 28 Billed customers $3,200 for cleaning services. 31 Paid gas and oil for month on truck $370. 31 Withdrew $1,000 cash for owner's personal use. 31 Hired a part-time office receptionist; salary is $1,800 per month 31 Signed a contract to maintain and clean carpets at Lawton City Hall, $2,100 per month The chart of accounts for L-Town Carpet Cleaners Inc. contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment-Truck, No. 158 Accumulated Depreciation - Equipment-Truck, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Kahlil Gibran, Capital, No. 320 Kahlil Gibran, Drawings, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, No. 726 Salaries Expense. Instruction: Submit neat, legibly handwritten in blue ink, properly filled out and compiled working papers. Arranged the papers properly by page numbers. a) Journalize and post the August transactions. Use page J1 for the journal and the four-column form of account showing account titles and account numbers. Skip one space between journal entries. b) Prepare a trial balance at August 31 on a work sheet. c) Enter the following adjustments on the work sheet and complete the work sheet. 1. Earned but unbilled revenue at August 31 was $780. 2. Depreciation on equipment for the month was $220. 3. One-twelfth of the insurance expired. 4. An inventory count shows $520 of cleaning supplies on hand at August 31. 5. Accrued but unpaid employee salaries were $500. d) Journalize and post adjusting entries. Use page 12 for the journal. e) Prepare the income statement and the owner's equity statement for August and a classified balance sheet as of August 31. f) Journalize and post-closing entries and complete the closing process. Use page 13 for the journal. B) Prepare a post-closing trail balance as of August 31