Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lars Linken opened Ayayai Cleaners on March 1, 2022. During March, the following transactions were completed. Mar. 1 Issued 7,400 shares of common stock for

Lars Linken opened Ayayai Cleaners on March 1, 2022. During March, the following transactions were completed.

Mar. 1

Issued 7,400 shares of common stock for $11,100 cash.

1

Borrowed $4,200 cash by signing a 6-month, 6%, $4,200 note payable. Interest will be paid the first day of each subsequent month.

1

Purchased used truck for $5,900 cash.

2

Paid $1,200 cash to cover rent from March 1 through May 31.

3

Paid $1,800 cash on a 6-month insurance policy effective March 1.

6

Purchased cleaning supplies for $1,480 on account.

14

Billed customers $2,740 for cleaning services performed.

18

Paid $370 on amount owed on cleaning supplies.

20

Paid $1,300 cash for employee salaries.

21

Collected $1,180 cash from customers billed on March 14.

28

Billed customers $3,110 for cleaning services performed.

31

Paid $260 for gas and oil used in truck during month (use Maintenance and Repairs Expense).

31

Declared and paid a $670 cash dividend.

Journalize the following adjustments. (Credit account titles are automatically indented when the 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.)

1. Services performed but unbilled and uncollected at March 31 was $150.
2. Depreciation on equipment for the month was $190.
3. One-sixth of the insurance expired.
4. An inventory count shows $210 of cleaning supplies on hand at March 31.
5. Accrued but unpaid employee salaries were $800.
6. One month of the prepaid rent has expired.
7. One month of interest expense related to the note payable has accrued and will be paid April 1.

image text in transcribedimage text in transcribed

AYAYAI CLEANERS Balance Sheet March 31, 2022 Assets Current Assets + Cash 5 4.980 Accounts Receivable 4.820 Supplies 210 Prepaid Rent 800 Prepaid Insurance 1500 Total Current Assets $ Property. Plant and Equipment + Equipment 5.900 Less :: Accumulated Depreciation Equipment 190 i Total Assets $ Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $ 1.110 Notes Payable 4,200 Salaries and Wages Payable 800 Interest Payable 21 Total Current Liabilities + $ Stockholders Equity + Common Stock 11,100 Retained Earnings 789 Total Stockholders' Equity Total Liabilities and Stockholders' Equity : Prepare a post-closing trial balance at March 31. AYAYAI CLEANERS Post-Closing Trial Balance Debit Credit $ $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting Volume 1

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

12th Canadian Edition

0136889373, 9780136889373

More Books

Students also viewed these Accounting questions

Question

Identify the major criticisms of boards of directors.

Answered: 1 week ago

Question

1. List the basic factors determining pay rates.pg 87

Answered: 1 week ago