Karen Noonan opened Sage Hill Cleaning Services Inc on February 1, 2022. During February, the following transactions were completed: Feb. 1 4 1 1 1 3 4 Issued 4.100 shares of Sage Hill Cleaning Services common stock for $10,660. Each share has a $1.50 par. Borrowed 56,560 on a 2-year, 6% note payable. Paid $7 400 to purchase used floor and window cleaning equipment from a company going out of business ($3.950 was for the floor equipment and $3,450 for the window equipment) Paid $180 for February Internet and phone services. Purchased cleaning supplies for $800 on account. Hired 4 employees. Each will be paid $390 per 5-day work week (Monday-Friday) Employees will begin working Monday, February 9, Obtained insurance coverage for $8.070 per year. Coverage runs from February 1, 2022. through January 31, 2023. Karenpaid $2,018 cash for the first quarter of coverage. 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 33.240 cash Billed customers $3,200 for cleaning services performed through February 13, 2022. Received $432 from a customer for 4 weeks of cleaning services to be in February 21, 2022 5 S 16 17 18 20 23 (By paying in advance, this customer received 10% of the normal weekly fee of $120.) Paid $250 on amount owed on cleaning supplies Paid $3 per share to buy 250 shares of Sage Hill Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. Billed customers $3,530 for cleaning services performed through February 20. Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). Collected $2,050 cash from customers billed on February 16. Paid $180 for Internet and phone services for March Declared and paid a cash dividend of $0.20 per share, 24 25 27 28 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 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Feb. 1 (To record issuance of common stock in excess of par) (To record purchase of notes payable) (To record purchase of equipment) (To record payment of internet and phone services) (To record payment of insurance) (To record payment of insurance) (To record sale of equipment) (To record sale of equipment)
