Question
Karen Noonan opened Marin Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 Issued 3,900 shares of Marin
Karen Noonan opened Marin Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 Issued 3,900 shares of Marin Cleaning Services common stock for $10,140. Each share has a $1.50 par. 1 Borrowed $6,240 on a 2-year, 6% note payable. 1 Paid $7,040 to purchase used floor and window cleaning equipment from a company going out of business ($3,760 was for the floor equipment and $3,280 for the window equipment). 1 Paid $170 for February Internet and phone services. 3 Purchased cleaning supplies for $760 on the account. 4 Hired 4 employees. Each will be paid $370 per 5-day work week (Monday Friday). Employees will begin working Monday, February 9. 5 Obtained insurance coverage for $7,680 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $1,920 cash for the first quarter of coverage. 5 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 $3,080 cash. 16 Billed customers $3,040 for cleaning services performed through February 13, 2022. 17 Received $432 from a customer for 4 weeks of cleaning services to begin February 21, 2022. (By paying in advance, this customer received 10% off the normal weekly fee of $120.) 18 Paid $230 on amount owed on cleaning supplies. 20 Paid $3 per share to buy 230 shares of Marin Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 23 Billed customers $3,350 for cleaning services performed through February 20. 24 Paid cash for employees wages for 2 weeks (February 913 and 1620). 25 Collected $1,950 cash from customers billed on February 16. 27 Paid $170 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.25 per share. (a) Journalize the February transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
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