Question 1

Lars Linken opened Indigo Cleaners on March 1, 2022. During March, the following transactions were completed.

Mar. 1		Issued 11,600 shares of common stock for $17,400 cash.
1		Borrowed $7,200 cash by signing a 6-month, 6%, $7,200 note payable. Interest will be paid the first day of each subsequent month.
1		Purchased used truck for $9,300 cash.
2		Paid $1,800 cash to cover rent from March 1 through May 31.
3		Paid $2,700 cash on a 6-month insurance policy effective March 1.
6		Purchased cleaning supplies for $2,320 on account.
14		Billed customers $4,290 for cleaning services performed.
18		Paid $580 on amount owed on cleaning supplies.
20		Paid $2,030 cash for employee salaries.
21		Collected $1,860 cash from customers billed on March 14.
28		Billed customers $4,870 for cleaning services performed.
31		Paid $410 for gas and oil used in truck during month (use Maintenance and Repairs Expense).
31		Declared and paid a $1,040 cash dividend.

The chart of accounts for Indigo Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated DepreciationEquipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Common Stock, 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.

INDIGO CLEANERS Balance Sheet March 31, 2022 Assets Current Assets Cash 8600 Accounts Receivable 7530 Supplies 320 Prepaid Rent 1200 Prepaid Insurance 2250 Total Current Assets 19900 $ Property, Plant and Equipment Equipment 9300 Less Accumulated Depreciation Equipme 290 9010 Total Assets 28910 $ Liabilities and Stockholders' Equity Current Liabilities Notes Payable 7200 Accounts Payable 1740 Salaries and Wages Payable 1250 Interest Payable 36 Total Current Liabilities 10226 $1 Stockholders' Equity Common Stock 17400 Retained Earnings 1284 Total Stockholders' Equity 18684 Total Liabilities and Stockholders' Equity 28910 $1 Click if you would like to Show Work for this question: Open Show Work Journalize and post closing entries and complete the closing process. have zero ending balance, the entry should be the balance date Date Account Titles and Explanation Debit Credit Mar. 31 (To close revenue account) Mar. 31 (To close expense accounts) Mar. 31 (To close net income to retained earnings) Mar. 31 (To close dividends to retained earnings) 3/1 3/1 3/21 9,300 1,800 2,700 580 2,030 410 1,040 3/31 Bal. Cash 17,400 3/1 7,2003/2 1,860|3/3 3/18 3/20 3/31 3/31 8,600 Accounts Receivable 4,290|3/21 4,870 230 7,530 Supplies 2,3203/31 320 1,860 3/14 3/28 3/31 3/31 Bal. 2,000 3/6 3/31 Bal. 600 3/2 3/31 Bal. 450 3/3 3/31 Bal. 3/1 3/31 Bal. Prepaid Rent 1,800|3/31 1,200 Prepaid Insurance 2,700|3/31 2,250 Equipment 9,300 9,3001 Accumulated Depreciation-Equipment 3/31 3/31 Bal. Notes Payable 3/1 3/31 Bal. Accounts Payable 290 290 7,200 7,200 3/18 580 3/6 2,320 1,740 1,250 1,250 3/31 Bal. Salaries and Wages Payable 3/31 3/31 Bal. Interest Payable 3/31 3/31 Bal. Common Stock 3/1 3/31 Bal. Retained Earnings 36 36 17,400 17,400 Dividends 3/31 1,040 Income Summary Service Revenue 3/14 4,290 3/28 4,870 3/31 230 Maintenance and Repairs Expense 3/31 410 Supplies Expense 3/31 2,000 4 Depreciation Expense 3/31 290 . Insurance Expense 3/31 450 Salaries and Wages Expense 3/20 2,030 3/31 1,250 . Rent Expense 3/31 600 4 Interest Expense 3/31 361