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Lars Linken opened Cheyenne Cleaners on March 1, 2022. During March, the following transactions were completed. Mar. 1 Owner invested $12,300 cash in the company.
Lars Linken opened Cheyenne Cleaners on March 1, 2022. During March, the following transactions were completed.
Mar. 1 | Owner invested $12,300 cash in the company. | ||
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 $6,600 cash. | ||
2 | Paid $1,200 cash to cover rent from March 1 through May 31. | ||
3 | Paid $2,100 cash on a 6-month insurance policy effective March 1. | ||
6 | Purchased cleaning supplies for $1,640 on account. | ||
14 | Billed customers $3,030 for cleaning services performed. | ||
18 | Paid $410 on amount owed on cleaning supplies. | ||
20 | Paid $1,440 cash for employee salaries. | ||
21 | Collected $1,310 cash from customers billed on March 14. | ||
28 | Billed customers $3,440 for cleaning services performed. | ||
31 | Paid $290 for gas and oil used in truck during month (use Maintenance and Repairs Expense). | ||
31 | Owner withdrew $740 cash from the company. |
Post adjusting entries to the T-accounts. 3/1 3/1 3/21 3/31 Bal. 3/14 3/28 Cash 12,300 3/1 4,800 3/2 1,310 3/3 5,630 3/18 3/20 3,440 3/31 3/31 Accounts Receivable 3,030 3/21 6,600 1,200 2,100 410 1,440 290 740 1,310 3/6 3/2 3/3 Supplies 1,640 Prepaid Rent 1,200 Prepaid Insurance 2,100 3/1 3/31 Bal. 3/18 Equipment 6,600 6,600 Accumulated Depreciation-Equipment Notes Payable 3/1 3/31 Bal. Accounts Payable 410 3/6 3/31 Bal. 4,800 4,800 1,640 1,230 3/31 Salaries and Wages Payable Interest Payable Owner's Capital 3/1 3/31 Bal. Owner's Drawings 740 12,300 12,300 3/31 Service Revenue 3/14 290 3/28 Maintenance and Repairs Expense Supplies Expense 3,030 3,440 3/20 Depreciation Expense Insurance Expense Salaries and Wages Expense 1,440 Rent Expense Rent Expense Interest Expense
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