Question
Lars Linken opened Bramble Cleaners on March 1, 2022. During March, the following transactions were completed. Mar. 1 Issued 7,800 shares of common stock for
Lars Linken opened Bramble Cleaners on March 1, 2022. During March, the following transactions were completed. Mar. 1 Issued 7,800 shares of common stock for $11,700 cash. 1 Borrowed $4,800 cash by signing a 6-month, 6%, $4,800 note payable. Interest will be paid the first day of each subsequent month. 1 Purchased used truck for $6,200 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 $1,560 on account. 14 Billed customers $2,890 for cleaning services performed. 18 Paid $390 on amount owed on cleaning supplies. 20 Paid $1,370 cash for employee salaries. 21 Collected $1,250 cash from customers billed on March 14. 28 Billed customers $3,280 for cleaning services performed. 31 Paid $270 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a $700 cash dividend. The chart of accounts for Bramble Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated DepreciationEquipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense.
Post adjusting entries to the T-accounts. 3/1 3/1 3/21 6,200 1,200 1,800 390 Cash 11,700 3/1 4,800 3/2 1,250 3/3 3/18 3/20 3/31 3/31 5,820 Accounts Receivable 2,890 3/21 1,370 270 700 3/31 Bal. 3/14 1,250 3/28 3,280 Supplies 1,560 3/6 Prepaid Rent 1,200 3/2 Prepaid Insurance 1,800 3/3 3/1 3/31 Bal. Equipment 6,200 6,200 Accumulated Depreciation Equipment Notes Payable 3/1 4,800 4,800 3/18 3/31 Bal. Accounts Payable 390 3/6 3/31 Bal. Salaries and Wages Payable 1,560 1,170 Interest Payable Common Stock 3/1 11,700 11,700 3/31 Bal. Dividends 3/31 700Step by Step Solution
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