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Prepare a trial balance. Karen Noonan opened Marin Cleaning Services Inc. on February 1, 2022. During February, the following transactions were complete Feb. 1 Issued
Prepare a trial balance.
Karen Noonan opened Marin Cleaning Services Inc. on February 1, 2022. During February, the following transactions were complete Feb. 1 Issued 5,100 shares of Marin Cleaning Services common stock for \$13,260. Each share has a \$1.50 par. 1 Borrowed $8,160 on a 2-year, 6% note payable. 1 Paid $9,200 to purchase used floor and window cleaning equipment from a company going out of business ( $4,920 was for the floor equipment and $4,280 for the window equipment). 1 Paid $220 for February Internet and phone services. 3 Purchased cleaning supplies for $1,000 on account. 4 Hired 4 employees. Each will be paid $490 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9. 5 Obtained insurance coverage for $10,040 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $2,510 cash for the first quarter of coverage. 5 Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window cleaning equipment for $4,030 cash. 16 Billed customers $3,980 for cleaning services performed through February 13, 2022. 17 Received $540 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 $150.) 18 Paid $310 on amount owed on cleaning supplies. 20 Paid $3 per share to buy 310 shares of Marin Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 23 Billed customers $4,390 for cleaning services performed through February 20. 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). 25 Collected $2,550 cash from customers billed on February 16. 27 Paid $220 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.30 per share. Post to the ledger accounts. (Post entries in the order of journal entries presented above.) Prepare a trial balance at February 28, 2022Step by Step Solution
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