Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent mal no entry is required select No
Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent mal no entry is required select "No Entry for the account titles and enter for the amounts) 1. Services performed but unbilled and uncollected at March 31 was $230, 2. Depreciation on equipment for the month was $290, 3. One sixth of the insurance expired 4. An Inventory count shows $320 of deaning supplies on hand at March 31 5. Accrued but unpaid employee salaries were $1,250. 6. One month of the prepaid rent has expired. 7. One month of interest expense related to the note payahle has scored and will be paid April 1 Sr. Date Account Titles and Explanation Debit Credit 1. 2. CAL 3, 4. s. I 6. 7. Question 1 Lars Unken opened Indigo Cleaners on March 1, 2022. During March, the following transactions were completed. Mar. 1 Issued 11,600 shares of common stock for $17.400 cash. 1 Borrowed $7,200 cash by signing a 6-month, 6%, $7,200 note payable, Interest will be paid the first day of each subsequent month 1 Purchased used truck for $9,300 cash. 2 Paid $1,800 cash to cover rent from March 1 through May 31. 3 Paid $2,700 cash on a 6-month insurance policy effective March 1. 6 Purchased cleaning supplies for $2,320 on account 14 Billed customers $4,290 for cleaning services performed. 18 Paid $580 on amount owed on cleaning supplies. 20 Paid $2,030 cash for employee salaries, 21 Collected $1,860 cash from customers billed on March 14. 28 Billed customers $4,870 for cleaning services performed. 31 Paid $410 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a $1,040 cash dividend. The chart of accounts for Indigo Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent Equipment Depreciation-Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, interest Payable, Common Stock, Retained Earnings, Dividends. In Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Expen Expense
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started