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Lars Linken opened Lars Cleaners on March 1, 2020. During March, the following transactions were completed. Complete all steps in accounting cycle. Mar. 1 Shareholders
Lars Linken opened Lars Cleaners on March 1, 2020. During March, the following transactions were completed. Complete all steps in accounting cycle. Mar. 1 Shareholders invested $15,000 cash in the business in exchange for ordinary shares. 1 Borrowed $6,000 cash by signing a 6-month, 6%, (6,000 note payable. Interest will be paid the first day of each subsequent month. 1 Purchased used truck for 68,000 cash. 2 Paid E1,500 cash to cover rent from March 1 through May 31. 3 Paid E2,400 cash on a 6-month insurance policy effective March 1. 6 Purchased cleaning supplies for $2,000 on account. Billed customers $3,700 for cleaning services performed. Paid $500 on amount owed on cleaning supplies. ON Paid E1,750 cash for employee salaries. Collected E1,600 cash from customers billed on March 14. CO N Billed customers (4,200 for cleaning services performed. Paid E350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). Declared and paid a 6900 cash dividend. The chart of accounts for Lars Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Share Capital-Ordinary, 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. Instructions a. Journalize the March transactions. b. Post to the ledger accounts. (Use T-accounts.) c. Prepare a trial balance at March 31. d. Journalize the following adjustments. 1. Services performed but unbilled and uncollected at March 31 were 6200. 2. Depreciation on equipment for the month was E250. 3. One-sixth of the insurance expired
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