Karen Noonan opened Tamarisk Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 1 1 1 3 4 5 5 Issued 4,500 shares of Tamarisk Cleaning Services common stock for $11,700. Each share has a $1.50 par. Borrowed $7,200 on a 2-year, 6% note payable. Paid $8,120 to purchase used floor and window cleaning equipment from a company going out of business ($4,340 was for the floor equipment and $3,780 for the window equipment). Paid $200 for February Internet and phone services. Purchased cleaning supplies for $880 on account. Hired 4 employees. Each will be paid $430 per 5-day work week (Monday-Friday). Employees will begin working Monday, February 9. Obtained insurance coverage for $8,860 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $2,215 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 $3,560 cash. Billed customers $3,510 for cleaning services performed through February 13, 2022. Received $504 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 $140.) Paid $270 on amount owed on cleaning supplies. Paid $3 per share to buy 270 shares of Tamarisk Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. Billed customers $3,870 for cleaning services performed through February 20. Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). Collected $2,250 cash from customers billed on February 16. Paid $200 for Internet and phone services for March. Declared and paid a cash dividend of $0.30 per share. 16 17 18 20 23 24 25 27 28 TAMARISK CLEANING SERVICES INC. Trial Balance 2/28/22 Debit Credit Cash 8690 $ Accounts Receivable 5130 Supplies 880 Prepaid Insurance 2215 Prepaid Expenses DOWN . 200 Equipment 4340 Accounts Payable 610 Notes Payable 7200 Unearned Service Revenue 504 Common Stock 6750 Paid-in Capital in Excess of Par Value-Common Stock 4950 Cash Dividends 1269 Treasury Stock 810 Service Revenue 7380 Utilities Expense 200 Salaries and Wages Expense 3440 Loss on Disposal of Plant Assets 220 Totals 27394 27394 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 for the amounts. Record journal entries in the order presented in the problem. Round answers to decimal places, eg. 1,527.) 1. 2. 3. 4. 5. Services performed for customers through February 27, 2022, but unbilled and uncollected were $3,420. Received notice that a customer who was billed $180 for services performed February 10 has filed for bankruptcy. Tamarisk Cleaning Services does not expect to collect any portion of this outstanding receivable. Tamarisk Cleaning Services uses the allowance method to estimate bad debts. Tamarisk Cleaning Services estimates that of its month-end receivables will not be collected. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $450 salvage value. Record 1 month of insurance expense. An inventory countshows $360 of supplies on hand at February 28. One week of services were performed for the customer who paid in advance on February 17. Accrue for wages owed through February 28, 2022. Accrue for interest expense for 1 month. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.) 6. 7. 8. 9. 10. No. Account Titles and Explanation Debit Credit 1. Accounts Receivable 3420 Service Revenue 3420 2. Allowance for Doubtful Accounts 180 Accounts Receivable 190 3. Bed Debt Expense 25: Allowance for Doubtful Accounts 25+ 4. Deprecation Expense Accumulated Depreciation Equipment 81 5. Insurance Expense 738 Prepeld Insurance 738 6. Supplies Expand 520 Supplies 520 7. Uncerned Service Revenue 126 Service Revenue 126 B. Selale and Weges Expense 1720 Selaries and Wepes Payable 1720 9. Interest Expense 36 Interest Payable UOTE 36 TAO 10. Income Tax Expense 744 Income Teces Payable 744 Karen Noonan opened Tamarisk Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 1 1 1 3 4 5 5 Issued 4,500 shares of Tamarisk Cleaning Services common stock for $11,700. Each share has a $1.50 par. Borrowed $7,200 on a 2-year, 6% note payable. Paid $8,120 to purchase used floor and window cleaning equipment from a company going out of business ($4,340 was for the floor equipment and $3,780 for the window equipment). Paid $200 for February Internet and phone services. Purchased cleaning supplies for $880 on account. Hired 4 employees. Each will be paid $430 per 5-day work week (Monday-Friday). Employees will begin working Monday, February 9. Obtained insurance coverage for $8,860 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $2,215 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 $3,560 cash. Billed customers $3,510 for cleaning services performed through February 13, 2022. Received $504 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 $140.) Paid $270 on amount owed on cleaning supplies. Paid $3 per share to buy 270 shares of Tamarisk Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. Billed customers $3,870 for cleaning services performed through February 20. Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). Collected $2,250 cash from customers billed on February 16. Paid $200 for Internet and phone services for March. Declared and paid a cash dividend of $0.30 per share. 16 17 18 20 23 24 25 27 28 TAMARISK CLEANING SERVICES INC. Trial Balance 2/28/22 Debit Credit Cash 8690 $ Accounts Receivable 5130 Supplies 880 Prepaid Insurance 2215 Prepaid Expenses DOWN . 200 Equipment 4340 Accounts Payable 610 Notes Payable 7200 Unearned Service Revenue 504 Common Stock 6750 Paid-in Capital in Excess of Par Value-Common Stock 4950 Cash Dividends 1269 Treasury Stock 810 Service Revenue 7380 Utilities Expense 200 Salaries and Wages Expense 3440 Loss on Disposal of Plant Assets 220 Totals 27394 27394 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 for the amounts. Record journal entries in the order presented in the problem. Round answers to decimal places, eg. 1,527.) 1. 2. 3. 4. 5. Services performed for customers through February 27, 2022, but unbilled and uncollected were $3,420. Received notice that a customer who was billed $180 for services performed February 10 has filed for bankruptcy. Tamarisk Cleaning Services does not expect to collect any portion of this outstanding receivable. Tamarisk Cleaning Services uses the allowance method to estimate bad debts. Tamarisk Cleaning Services estimates that of its month-end receivables will not be collected. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $450 salvage value. Record 1 month of insurance expense. An inventory countshows $360 of supplies on hand at February 28. One week of services were performed for the customer who paid in advance on February 17. Accrue for wages owed through February 28, 2022. Accrue for interest expense for 1 month. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.) 6. 7. 8. 9. 10. No. Account Titles and Explanation Debit Credit 1. Accounts Receivable 3420 Service Revenue 3420 2. Allowance for Doubtful Accounts 180 Accounts Receivable 190 3. Bed Debt Expense 25: Allowance for Doubtful Accounts 25+ 4. Deprecation Expense Accumulated Depreciation Equipment 81 5. Insurance Expense 738 Prepeld Insurance 738 6. Supplies Expand 520 Supplies 520 7. Uncerned Service Revenue 126 Service Revenue 126 B. Selale and Weges Expense 1720 Selaries and Wepes Payable 1720 9. Interest Expense 36 Interest Payable UOTE 36 TAO 10. Income Tax Expense 744 Income Teces Payable 744