Karen Noonan opened Metlock Inc. on February 1, 2017. During February, the following transactions were completed:
(Feb. 1) Issued 4,000 shares of Metlock common stock for $15,600. Each share has a $1.50 par.
(Feb. 1) Borrowed $6,600 on a 2-year, 6% note payable.
(Feb 1.) Paid $10,820 to purchase used floor and window cleaning equipment from a company going out of business ($3,960 was for the floor equipment and $6,860 for the window equipment).
(Feb. 1) Paid $260 for February Internet and phone services.
(3) Purchased cleaning supplies for $1,180 on account.
(4) Hired 4 employees. Each will be paid $580 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9.
(5) Obtained insurance coverage for $11,040 per year. Coverage runs from February 1, 2017, through January 31, 2018. Karen paid $2,760 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 $4,740 cash.
(16) Billed customers $4,680 for cleaning services performed through February 13, 2017.
(17) Received $468 from a customer for 4 weeks of cleaning services to begin February 21, 2017.
(18) Paid $360 on amount owed on cleaning supplies.20Paid $3 per share to buy 300 shares of Metlock common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares.
(23.) Billed customers $5,160 for cleaning services performed through February 20.
(24)Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20).25Collected $3,000 cash from customers billed on February 16.
(27)Paid $260 for Internet and phone services for March.
(28)Declared and paid a cash dividend of $0.30 per share.
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.)
Post to the ledger accounts.(Post entries in the order of journal entries presented above.)
Make trial balance at February 28, 2017.
Journalize the following adjustments.(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. Round answers to 0 decimal places, e.g. 1,527.)
(1)Services performed for customers through February 27, 2017, but unbilled and uncollected were $4,560.
(2)Received notice that a customer who was billed $200 for services performed February 10 has filed for bankruptcy. Metlock does not expect to collect any portion of this outstanding receivable.
(3)Metlock uses the allowance method to estimate bad debts. Metlock estimates that 3% of its month-end receivables will not be collected.
(4)Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $600 salvage value.
(5)Record 1 month of insurance expense.
(6)An inventory count shows $480 of supplies on hand at February 28.
(7)One week of services were performed for the customer who paid in advance on February 17.
(8)Accrue for wages owed through February 28, 2017.
(9)Accrue for interest expense for 1 month.
(10)Karen estimates a 20% income tax rate. (Hint:Make income statement up to "income before taxes" to help with the income tax calculation.)
Post adjusting entries to the T-accounts.(Post entries in the order of journal entries presented above.)
Make adjusted trial balance.
Make multiple-step income statement as of February 28, 2017.
Make retained earnings statement as of February 28, 2017.(List items that increase retained earnings first.)
Make properly classified balance sheet as of February 28, 2017.(List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
Journalize closing entries.(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.)
Post closing entries to the T-accounts.(Post entries in the order of journal entries presented above. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.)
****ANY AND ALL HELP IS GREATLY APPRECIATED****
Comprehensive Accounting cycle Review 11-2 Karen Noonan opened Metlock inc. on February 1, 2017. During Febmary, the following transactiom were completed: Feb. 1 Issued 4,000 shares of Meock common stock for $15,600. Each share has a $1.50 par. 1 Borrowed $6,600 on a 2-year, 6% note payable. 1 Paid $10,820 to purchase used oor and window cleaning equipment from a company going out of buslnss ($3,960 was for the oor equipment and $6,860 for the window equipment). 1 Paid $260 for Febmary Internet and phone services. 3 Purchxed cleaning supplies for $1,130 on account. 4 Hired 4 employees. Each will be paid $580 per 5-day work week (Monday- Friday). Employees will begin working Monday. February 9. 5 Oblained insurance coverage for $11,040 per year. Coverage runs from February 1, 2017, through January 31, 201'. Karen paid $2,760 sh for the rst 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 deanlng equipment for $4,740 cash. 16 Billed customers $4,680 for cleaning services perfumed d1rough February 13, 2017. 17 Received $468 from a customer for 4 weeks of cleaning services m begin February 21, 2017. 18 Paid $360 on amount owed on cleaning mppli. 20 Paid $3 per share to buy 300 shares of Medock common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 23 Billed customers $5,160 for cleaning services performed through February 20. 24 Paid cash for employees' wages fur 2 weeks (February 9-13 and 16-20). 25 Collected $3,000 cam from customers billed on February 16. 27 Paid $260 for Internet and phone services for March. 28 Dedared and paid a cash dividend of $0.30 per share. Joumalize the February transactions. (Credit account titles are automatically indented when amount is entered. Do not Indent rnanuail'y. If no entry Is requiredr select "No Entry\" for the account titles and enter 0 for the amount. Record journal entries In the order presented In the pmblem.) Date Account Titls and Explanation Debit Credit bmmrdmmeofmmunslndin-sofpar) l a (1?: record purdiaseofndzpam) \fPost to the ledger amounls. (Post entries In the order ofjourna! entries presented above.) Cash :, (,LMML ACCOUHtS Receivable Supplies n Prepaid Insurance o Prepaid Expenses o u Equipment :3 Accounts Payable 0 Notes Payable unearned Service Revenue a o o n L o n ma uLLaauuuL \fJournalize the following adjustmener. (Credlt account titles are automatically indented when amountis entered. Do not indent manually. Ifno en'y is required, select \"No Entry\" for the mount titles and en a for the amounb. Recordjourna! entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 1,527.) (I) Services performed for customers H1rough February 27, 2017, but unbllled and uncalledred were $4,560. (2) Received notice that a customer who was billed $200 for services performed Feanary 10 has led for bankruptcy. Metluck do: not expend: tn collect any portion of \"1'5 oulsiandlng receivable. [3) Metlock us. the allowance method to stimate bad debts. Metiock ejmahes that 3% of its month-end receivables will not be collected. [4) Record 1 monlh of depreciation forthe oor equipment. Use the straight-line med-rod, an estimated life 0M- years. and $600 salvage value. (5) Record 1 mend-r of Imumnce expense. (6) An inventnry count shows $434] of mpplia on hand at February 28. (7) One week of serving were perfumed for the customer who paid In advance on Fethary 17. (B) Accrue for wage owed through Feanary 28, 2017. (9) Accrue for lnberst expmse for 1 month. (10} Karen estimates a 20% income tax rate. (Hint: Prepare an Income statement up to 'Income before taxes\" to help with the income tax mlculauon.) No. Account 'I'Itl and Explanation Debit Credit 1. 4. Post adjustan entrles tn the T-accounm. (Past entries In the order afjaumal' entries presented above.) 2,]1 15,600 1 10,820 2,!1 6,600 1 260 2f 4,740 5 2,760 #17 468 18 360 21'25 3,000 20 900 24 4,640 27 260 23 1,110 212: Bal. 9,293 Acceunts Receivahle 216 4,580 25 3,000 #23 5,160 n Prepaid Insurance 2f 2,760 a Prepaid Expenses #27 260 a #28 ll. 260 Allowance for Do Accumulated Depreciation Equipment \f2f20 ml?! o Service Revenue V 16 4,680 r 23 5,150 0 2!]. 2:24 Utilities Expense 260 Salaries and W 4,640 ages Expense u Insurance Expense o Depreciatio n Expense o Bad Debt Expense o Supplies Expense u c) Interest Expense u u Loss on Disposal 2.12:] Income Tax Expense of Plant Assets _ \fPrepare a retained earnings statement as of FebruaryI 23, 201?. (List items that increase retained earnings at.) Hetlnck Inc. Retained Earnings Statement \fJuumallze dailng entries. (Credit account ue: are au'Jmchay lndanted when amount 15 calmed. Do nol linden! manually. .'no entry is required, select \"No Entry" 1hr le account titles and antar O forth: amounts.) Date Accuunt Titles and Explanation Debit Credit H. 23 (1b dose revenue account) $.23 (To date expense amoums) ELIE (1b dose net Ina-rte} (1055)) $.23 (To dose dwidends) Post closing entrles to the T-ancounts. (Post enmes In the order ofjbm'naf entrles presented above. For accounts that have zen: ending balance, the entry should be the balance date and zero for the amount.) 2]]. 15,600 1 10,820 2,11 6,600 1 260 235 4,740 5 2,760 2,117 468 18 360 23'25 3,000 20 900 24 4,540 27 260 28 1,110 23'16 4,68 l 2f25 3,000 2,123 5,16 l 2/28 200 23'28 4,56! 2,128 Bal. 11,20 23 1,18 2]!!! 700 2,128 Bal. 4-H: Prepaid Insurance 25 2,76I2a 920 2,!28 Bal. 1,34: Prepaid Expenses 2'27 26 2,128 Bal. 26 AIIOWHIICE for Doubtful ACCOUI'ICS 28 Bal an Equ ment 70 ' 28 Bal. 7D Accounls Payable 2118 as 1!! 1,130 1128 Bal' 820 Mates Payable ' 1 6,600 I 28 Bal. 6,600 Sala 3 and Wags Payable 28 Ba Interest Payable