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.

Date Account Titles and Explanation Debit Credit Mar. 31 Service Revenue 9390 9390 Income Summary (To close revenue account) Mar. 31 Income Summary 7066 Maintenance and Repairs Expense 410 Supplies Expense 2000 Depreciation Expense 290 Insurance Expense 450 Salaries and Wages Expense 3280 Rent Expense 600 Interest Expense 36 (To close expense accounts) Mar. 31 Income Summary 2324 Retained Earnings 2324 (To close net income to retained earnings) Mar. 31 Retained Earnings 1040 Dividends 1040 (To close dividends to retained earnings) 3/1 3/1 3/21 Cash 17,400|3/1 7,2003/2 1,860|3/3 3/18 |3/20 3/31 3/31 9,300 1,800 2,700 580 2,030 410 1,040 1,040 3/31 Bal. 1,860 3/14 3/28 3/31 3/31 Bal. 2,000 3/6 3/31 Bal. 600 3/2 3/31 Bal. 3/3 450 3/31 Bal. 3/1 3/31 Bal. 3/31 8,600 Accounts Receivable 4,290|3/21 4,870 230 7,530 Supplies 2,320|3/31 320 Prepaid Rent 1,800|3/31 1,200 Prepaid Insurance 2,7003/31 2,2501 Equipment 9,300 9,300 Accumulated Depreciation Equipment |3/31 3/31 Bal. Notes Payable 3/1 3/31 Bal. Accounts Payable 580|3/6 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. 290 290 7,200 7,200 3/18 2,320 1,740 1,250 1,250 36 36 17,400 17,400 Retained Earnings 3/31 1040||| 3/31 2324 3/31 Bal. A 1284 Dividends 3/31 1,040 3/31 1040 3/31 Bal. A 0 Income Summary 3/31 7066 3/31 9390 3/31 2324 3/31 Bal. 0 Service Revenue 3/31 939013/14 4,290 3/28 4,870 3/31 230 3/31 Bal. 0 Maintenance and Repairs Expense 3/31 410 3/31 410 3/31 Bal. A 0 Supplies Expense 2,000 3/31 3/31 2000 3/31 Bal. A 0 Depreciation Expense 3/31 290|| 3/31 290 3/31 Bal. A 0 Insurance Expense 3/31 450|| 3/31 450 3/31 Bal. A o Salaries and Wages Expense 3/20 2,030|| 3/31 3280 3/31 1,250] 3/31 Bal. A 0 Rent Expense 3/31 600 3/31 600 3/31 Bal. A 0 Interest Expense 3/31 36 3/31 36 3/31 Bal. A 0 Prepare a post-closing trial balance at March 31. INDIGO CLEANERS Post-Closing Trial Balance Debit Credit $ $ $