Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Laura Eddy opened Eddy's Carpet Cleaners on March 1, 2021. In March, the following transactions were completed: Complete all steps in accounting cycle. Mar. 1

Laura Eddy opened Eddy's Carpet Cleaners on March 1, 2021. In March, the following transactions were completed: Complete all steps in accounting cycle. Mar. 1 Laura invested $10,000 cash in the business. 1 Purchased a used truck for $6,500, paying $1,500 cash and signing a note payable for the balance. 3 Purchased supplies for $1,200 on account. 5 Paid $1,200 on a one-year insurance policy, effective March 1. 12 Billed customers $4,800 for cleaning services. 18 Paid $500 of amount owed on supplies. 20 Paid $1,800 for employee salaries. 21 Collected $1,400 from customers billed on March 12. 25 Billed customers $2,500 for cleaning services. 31 Paid $375 for repairs on the truck. 31 Withdrew $900 cash for personal use. Instructions a. Journalize and post the March transactions. b. Prepare a trial balance at March 31. c. Journalize and post the following adjustments: The truck has an estimated useful life of five years. One twelfth of the insurance expired. An inventory count shows $400 of supplies on hand at March 31. Accrued but unpaid employee salaries were $500. The note payable has a 4.5% annual interest rate. Unbilled cleaning services at March 31 were $500. d. Prepare an adjusted trial balance. e. Prepare the income statement and statement of owner's equity for March, and a classified balance sheet at March 31, 2021. Of the note payable, $2,000 must be paid by March 1, 2022. f. Journalize and post the closing entries. g. Prepare a post-closing trial balance at March 31.

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

Step: 3

blur-text-image

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

Cost Accounting Fundamentals Essential Concepts And Examples

Authors: Steven M. Bragg

6th Edition

1642210234, 9781642210231

More Books

Students also viewed these Accounting questions