Comprehensive Accounting Cycle Review 11-02 (Part Level Submission) Karen Noonan opened Skysong Cleaning Services Inc. on February 1, 2022. During February, the following transactions were complet Feb. 1 Issued 5,500 shares of Skysong Cleaning Services common stock for $14,300. Each share has a $1.50 par. Borrowed $8,800 on a 2-year, 6 % note payable. 1 Paid $9,920 to purchase used floor and window cleaning equipment from a company 1 going out of business ($5,300 was for the floor equipment and $4,620 for the window equipment). Paid $240 for February Internet and phone services. Purchased cleaning supplies for $1,080 on account. Hired 4 employees. Each will be paid $530 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9. 1 Obtained insurance coverage for $10,820 per year. Coverage runs from February 1, 2022, 5 through January 31, 2023. Karen paid $2,705 cash for the first quarter of coverage. Discussions with the insurance agent indicated that providing outside window cleaning 5 services would cost too much to insure. Karen sold the window cleaning equipment for $4,350 cash. Billed customers $4,290 for cleaning services performed through February 13, 2022 16 Received $612 from a customer for 4 weeks of cleaning services to begin February 21, 2022. (By paying in advance, this customer received 10% off the normal weekly fee of $170.) Paid $330 on amount owed on cleaning supplies. 17 18 Paid $3 per share to buy 330 shares of Skysong Cleaning Services common stock from a shareholder 20 who disagreed with management goals. The shares will be held as treasury shares Billed customers $4,730 for deaning services performed through February 20 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). Collected $2,750 cash from customers billed on February 16. Paid $240 for 1Internet and phone services for March. Declared and paid a cash dividend of $0.25 per share. 23 24 25 27 28 (a) Your answer is correct. Journalize the February transactions. (Credit account titles are automatically indented when amount is entered. Do not indent man in the order presented in the problem.) Credit Debit Account Titles and Explanation Date 14300 Feb. 1 Cash 8250 Common Stock 6050 Pald-in Capltal In Excess of Par Value-Common St) (To record issuance of common stock in excess of par) 8800 un (a) Your answer is correct. Journalize the February transactions. (Credit account titles are automatically indented when amount is in the order presented in the problem.) Debit Credit AcCount Titles and Explanation Date 14300 Feb. 1 Cash 8250 Common Stock 6050 Paid-in Capital in Excess of Par Value-Common St (To record issuance of common stock in excess of par) 8800 Feb. 1 Cash 8800 Notes Payable (To record purchase of notes payable) Feb. 1 Equipment 9920 9920 Cash (To record purchase of equipment Utilities Expense 240 Feb. 1 Cash 240 (To record payment of internet and phone services) Feb. 3 Supplies 1080 Accounts Payable 1080 Feb. 4 No Entry No Entry Jul Feb. 5 Prepaid Insurance 2705 2705 Cash (To record payment of insurance) (To record payment of insurance) Feb. 5 V Cash 4350 270 Loss on Disposal of Plant Assets 4620 Equipment (To record sale of equipment) Feb. 16 Accounts Receivable 4290 4290 Service Revenue Feb. 17 Cash 612 Unearned Service Revenue 612 Feb. 18 Accounts Payable 330 Cash Feb. 20 Treasury Stock 990 Cash 990 Feb. 23 Accounts Receivable 4730 Service Revenue 4730 Feb. 24 Salaries and Wages Expense 4240 Cash 4240 Feb. 25 Cash 2750 Accounts Receivable 2750 Feb. 27 Prepaid Expenses 240 Cash 240 Feb. 28 Cash Dividends 1292,5 330 Cash 990 Feb. 20 Treasury Stock 990 Cash Feb. 23 4730 Accounts Receivable 4730 Service Revenue 4240 Salaries and Wages Expense Feb. 24 4240 Cash 2750 Feb. 25 Cash 2750 Accounts Receivable Feb. 27 240 Prepaid Expenses Cash 240 Feb. 28 1292.5 Cash Dividends Cash 1293 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT (b) Your answer is correct. Post to the ledger accounts. (Post entries in the order of journal entries presented above.) Cash 2/1 2/1 14300 9920 Your answer is correct. Prepare a trial balance at February 28, 2022. SKYSONG CLEANING SERVICES INC. Trial Balance 2/28/22 Credit Debit 10854 Cash 6270 Accounts Receivable 1080 Supplies 2705 Prepaid Insurance 240 Prepaid Expenses Equipment 5300 750 Accounts Payable Notes Payable 8800 Unearned Service Revenue 612 Common Stock 8250 Paid-in Capital in Excess of Par Value-Common Stock 6050 Cash Dividends 1293 Treasury Stock 990 Service Revenue 9020 Tutilities Expense 240 Salaries and Wages Expense 4240 Loss on Disposal of Plant Assets 270 Totals 334821 33482 Heln System Ancuncamfd (4) Your anawer is partiaily correct Try bgain. Journalize the following adjustreents. (Credit nccount ttles are automaticady indented when amount is entered. Do not indent ma. Services performed for customers through February 27, 2022, but unbilled and uncolected were $4,180 1. 2. Received notice that a custemer who was biled $220 lor services performed February 10 has filed tor bankruptty. Skysong Cleaning Services does not expect to collect any portion of this outstanding receivable. Skysong Cleaning Services uses the allowence method to estimate bed debts. Skysong Cleaning Services estimates that 3% of its month-end receivables will hot be collected 31 Record 1 month of depredation for the floor equipment, Use the straight-line method, an estimated ide of A years, and $550 salvage value. Record 1 month of insurance expense 6. An inventory count shows $44o of supplies on hand at February 28 7. One week of services were performed for the customer who paid n advance on February 17. Accrue for wages owed through February 28, 2022 9 Accrue tor interest expense for 1 manth. Karen estimates a 20 % income tax rete. (Hint: Prepere an inceeme statement up to income before taxes" to helo with the income tax calculation.) 10. No. Account Ttles and Explanation Debit Credit 13 Acceunts Receivable 4180 4180 Service Revenue 220 Allowance fee Doubtful Accounts 220 Accounts Receivable 33 Bad Debt Expense 534 534 Allowance for Doubul Accounts A Depreciation Expense Accumulated Depreciation-Equipmens Prepaid lnsuranke 853 inssrance Exeese 6. supaies Expense 6-40 Supples 7 uneamed Service Revenue Service Revende Seleries and wages Expense 2120 2120 Salanes and wages Pavable .interest Expense Tnteiest Peyeble ocome Ta pense Click if yow wewld tike to Show Work for this question Comprehensive Accounting Cycle Review 11-02 (Part Level Submission) Karen Noonan opened Skysong Cleaning Services Inc. on February 1, 2022. During February, the following transactions were complet Feb. 1 Issued 5,500 shares of Skysong Cleaning Services common stock for $14,300. Each share has a $1.50 par. Borrowed $8,800 on a 2-year, 6 % note payable. 1 Paid $9,920 to purchase used floor and window cleaning equipment from a company 1 going out of business ($5,300 was for the floor equipment and $4,620 for the window equipment). Paid $240 for February Internet and phone services. Purchased cleaning supplies for $1,080 on account. Hired 4 employees. Each will be paid $530 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9. 1 Obtained insurance coverage for $10,820 per year. Coverage runs from February 1, 2022, 5 through January 31, 2023. Karen paid $2,705 cash for the first quarter of coverage. Discussions with the insurance agent indicated that providing outside window cleaning 5 services would cost too much to insure. Karen sold the window cleaning equipment for $4,350 cash. Billed customers $4,290 for cleaning services performed through February 13, 2022 16 Received $612 from a customer for 4 weeks of cleaning services to begin February 21, 2022. (By paying in advance, this customer received 10% off the normal weekly fee of $170.) Paid $330 on amount owed on cleaning supplies. 17 18 Paid $3 per share to buy 330 shares of Skysong Cleaning Services common stock from a shareholder 20 who disagreed with management goals. The shares will be held as treasury shares Billed customers $4,730 for deaning services performed through February 20 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). Collected $2,750 cash from customers billed on February 16. Paid $240 for 1Internet and phone services for March. Declared and paid a cash dividend of $0.25 per share. 23 24 25 27 28 (a) Your answer is correct. Journalize the February transactions. (Credit account titles are automatically indented when amount is entered. Do not indent man in the order presented in the problem.) Credit Debit Account Titles and Explanation Date 14300 Feb. 1 Cash 8250 Common Stock 6050 Pald-in Capltal In Excess of Par Value-Common St) (To record issuance of common stock in excess of par) 8800 un (a) Your answer is correct. Journalize the February transactions. (Credit account titles are automatically indented when amount is in the order presented in the problem.) Debit Credit AcCount Titles and Explanation Date 14300 Feb. 1 Cash 8250 Common Stock 6050 Paid-in Capital in Excess of Par Value-Common St (To record issuance of common stock in excess of par) 8800 Feb. 1 Cash 8800 Notes Payable (To record purchase of notes payable) Feb. 1 Equipment 9920 9920 Cash (To record purchase of equipment Utilities Expense 240 Feb. 1 Cash 240 (To record payment of internet and phone services) Feb. 3 Supplies 1080 Accounts Payable 1080 Feb. 4 No Entry No Entry Jul Feb. 5 Prepaid Insurance 2705 2705 Cash (To record payment of insurance) (To record payment of insurance) Feb. 5 V Cash 4350 270 Loss on Disposal of Plant Assets 4620 Equipment (To record sale of equipment) Feb. 16 Accounts Receivable 4290 4290 Service Revenue Feb. 17 Cash 612 Unearned Service Revenue 612 Feb. 18 Accounts Payable 330 Cash Feb. 20 Treasury Stock 990 Cash 990 Feb. 23 Accounts Receivable 4730 Service Revenue 4730 Feb. 24 Salaries and Wages Expense 4240 Cash 4240 Feb. 25 Cash 2750 Accounts Receivable 2750 Feb. 27 Prepaid Expenses 240 Cash 240 Feb. 28 Cash Dividends 1292,5 330 Cash 990 Feb. 20 Treasury Stock 990 Cash Feb. 23 4730 Accounts Receivable 4730 Service Revenue 4240 Salaries and Wages Expense Feb. 24 4240 Cash 2750 Feb. 25 Cash 2750 Accounts Receivable Feb. 27 240 Prepaid Expenses Cash 240 Feb. 28 1292.5 Cash Dividends Cash 1293 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT (b) Your answer is correct. Post to the ledger accounts. (Post entries in the order of journal entries presented above.) Cash 2/1 2/1 14300 9920 Your answer is correct. Prepare a trial balance at February 28, 2022. SKYSONG CLEANING SERVICES INC. Trial Balance 2/28/22 Credit Debit 10854 Cash 6270 Accounts Receivable 1080 Supplies 2705 Prepaid Insurance 240 Prepaid Expenses Equipment 5300 750 Accounts Payable Notes Payable 8800 Unearned Service Revenue 612 Common Stock 8250 Paid-in Capital in Excess of Par Value-Common Stock 6050 Cash Dividends 1293 Treasury Stock 990 Service Revenue 9020 Tutilities Expense 240 Salaries and Wages Expense 4240 Loss on Disposal of Plant Assets 270 Totals 334821 33482 Heln System Ancuncamfd (4) Your anawer is partiaily correct Try bgain. Journalize the following adjustreents. (Credit nccount ttles are automaticady indented when amount is entered. Do not indent ma. Services performed for customers through February 27, 2022, but unbilled and uncolected were $4,180 1. 2. Received notice that a custemer who was biled $220 lor services performed February 10 has filed tor bankruptty. Skysong Cleaning Services does not expect to collect any portion of this outstanding receivable. Skysong Cleaning Services uses the allowence method to estimate bed debts. Skysong Cleaning Services estimates that 3% of its month-end receivables will hot be collected 31 Record 1 month of depredation for the floor equipment, Use the straight-line method, an estimated ide of A years, and $550 salvage value. Record 1 month of insurance expense 6. An inventory count shows $44o of supplies on hand at February 28 7. One week of services were performed for the customer who paid n advance on February 17. Accrue for wages owed through February 28, 2022 9 Accrue tor interest expense for 1 manth. Karen estimates a 20 % income tax rete. (Hint: Prepere an inceeme statement up to income before taxes" to helo with the income tax calculation.) 10. No. Account Ttles and Explanation Debit Credit 13 Acceunts Receivable 4180 4180 Service Revenue 220 Allowance fee Doubtful Accounts 220 Accounts Receivable 33 Bad Debt Expense 534 534 Allowance for Doubul Accounts A Depreciation Expense Accumulated Depreciation-Equipmens Prepaid lnsuranke 853 inssrance Exeese 6. supaies Expense 6-40 Supples 7 uneamed Service Revenue Service Revende Seleries and wages Expense 2120 2120 Salanes and wages Pavable .interest Expense Tnteiest Peyeble ocome Ta pense Click if yow wewld tike to Show Work for this
