Question
November 17, 2017 Mark purchases cleaning supplies from Big Sparkle Company totaling $6,200. After reaching the set credit limit, Peavy paid cash for the balance
November 17, 2017 | Mark purchases cleaning supplies from Big Sparkle Company totaling $6,200. After reaching the set credit limit, Peavy paid cash for the balance of the purchase. Terms are n/eom. Supplies will be a prepaid expense and inventory of supplies taken at June 30 and December 31. |
November 17, 2017 | Mark receives the companys first large corporate cleaning job cleaning the Warhawk Gym for $2,800 after a basketball game. Vic and Emelia provide cleaning that night and Warhawk Gym is billed for the service with terms of 1/10, n/eom. Both Vic and Emelia work 4 hours overtime for this job. |
November 17, 2017 | Mark is contacted to clean up for a local church after a wedding party on November 18, 2017. Since the job was last-minute notice, Peavy negotiates a $3000 fee and tells both Emelia and Vic to handle the job the same day. Since Vic needed to polish the floors, Vic works 3 hours and Emelia works 2 hours after the wedding. The church wires Peavys Cleaning Corporations bank account $3000 the same day as the job. The church has a floor polishing machine. |
November 20, 2017 | Mark fills up the company truck with gasoline at a cost of $39. |
November 20, 2017 | Mark is contacted by Lane who will be hosting an Iron Bowl party at his residence on Saturday, November 25, 2017. Lane needs cleaning services on Sunday, November 26, 2017. Mark negotiates a $750 fee and Lane pays Mark on November 20, 2017. |
November 23, 2017 | Mark gives personnel a paid holiday. Since the company does not have a leave policy in place yet, this holiday will not affect payroll at end of month. |
November 26, 2017 | Vic and Emelia work 3 hours each to clean up after the Iron Bowl party. |
November 27, 2017 | Mark purchases gas for the truck for $46. On the way home, Mark decides he needs to pay his own personal bills so he draws $1200 for personal use from the business. Linda calls Mark to inform him that Warhawk Gym has paid their bill within the discount period. |
November 29, 2017 | Mark negotiates a deep cleaning of a bathtub at the home of the Smith family for that afternoon. He is paid $250 for this service. Mark purchases a special tool to complete this cleaning at Lowes for $2000 and pays cash. Vic completes the service by 5:00 pm. Mark asks one of the store managers their opinion on the useful life of the tool and they give him an estimate of 3 years with $0 residual value. Mark determines that he will use that estimate for depreciation purposes for the tool. |
November 30, 2017 | The office manager completes payroll for Marks review including the overtime pay for jobs after hours for Vic and Emelia. Mark pays the office manager and cleaning crew for their time work since November 16, 2017. |
November 30, 2017 | The office manager bills weekly and bi-weekly customers for service, pays accounts payable balances due, and completes adjusting and closing end of month journal entries and prepares a trial balance and financial statements for Marks review. Check figures Retained Earnings balance for balance sheet is equal to $4126 and Total Assets are $107,126. |
What are the journal entries for these events?
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