Question 1 Lars Linken opened Sarasota Cleaners on March 1, 2022. During March, the following transactions were completed. Mar. Issued 10,400 shares of common stock for $15,600 cash. 1 Borrowed $6,000 cash by signing a 6-month, 6%, $6,000 note payable. Interest will be paid the first 1 day of each subsequent month. 1 Purchased used truck for $8,300 cash. 2 Paid $1,500 cash to cover rent from March 1 through May 31. 3 Paid $2,400 cash on a 6-month insurance policy effective March 1. 6 Purchased cleaning supplies for $2,080 on account. 14 Billed customers $3,850 for cleaning services performed. 18 Paid $520 on amount owed on cleaning supplies. 20 Paid $1,820 cash for employee salaries. 21 Collected $1,660 cash from customers billed on March 14. 28 Billed customers $4,370 for cleaning services performed. 31 Paid $360 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a $940 cash dividend. The chart of accounts for Sarasota Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, 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. Prepare an adjusted trial balance. SARASOTA CLEANERS Trial Balance March 31, 2022 , Debit Credit Cash 7420 . 67701 Accounts Receivable Supplies 290 Prepaid Rent 1000 Prepaid Insurance 2000 Equipment 8300 Accumulated Depreciation Equipment 2601 Notes Payable 6000 Accounts Payable 1560 Salaries and Wages Payable 1120 Interest Payable 30 Common Stock 15600 Dividends 940 Service Revenue 8430 Maintenance and Repairs Expense 360 Supplies Expense . 1790 Depreciation Expense 260 Insurance Expense 400 Salaries and Wages Expense . 2940 Rent Expense 500 Interest Expense 30 Totals 33000 33000 Click if you would like to Show Work for this question: Open Show Work SARASOTA CLEANERS Balance Sheet March 31, 2022 , Assets Current Assets Cash 7420 Accounts Receivable 67701 Supplies 290 Prepaid Rent 1000 Prepaid Insurance 2000 Total Current Assets 17480 Property, plant and Equipment Equipment 8300 Less Accumulated Depreciation Equipment 260 8040 Total Assets 25520 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 1560 Notes Payable 6000 Salaries and Wages Payable 11201 Interest Payable 30 Total Liabilities and Stockholders' Equity - 8710 Stockholders' Equity Common Stock 15600 Retained Earnings 1210 Total Stockholders' Equity 16810 Total Liabilities and Stockholders' Equity 255201 Click if you would like to Show Work for this question: Open Show Work (h) Journalize and post closing entries and complete the closing process. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.) Date Account Titles and Explanation Debit Credit Mar. 31 Service Revenue Income Summary (To close revenue account) Mar. 31 Income Summary Salaries and Wages Expense Rent Expense Supplies Expense Income Tax Expense (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 Cash 15,600 3/1 6,000 3/2 1,660 3/3 3/18 3/20 3/31 3/31 7,420 Accounts Receivable 3,850 3/21 4,370 210 8,300 1,500 2,400 520 1,820 360 940 3/31 Bal. 1,660 3/14 3/28 3/31 3/31 Bal 6.770l 3/31 Bal. 7,420 Accounts Receivable 3,850 3/21 1,660 4,370 3/14 3/28 3/31 3/31 Bal. 1,790 3/6 3/31 Bal. 500 3/2 3/31 Bal. 400 3/3 3/31 Bal. 3/1 3/31 Bal. 260 210 6,770 Supplies 2,080 3/31 290 Prepaid Rent 1,500 3/31 1,000 Prepaid Insurance 2,400 3/31 2,000 Equipment 8,300 8,300 Accumulated Depreciation Equipment 3/31 3/31 Bal. Notes Payable 3/1 3/31 Bal. Accounts Payable 520 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. Retained Earnings 260 6,000 6,000 3/18 2,080 1,560 1,120 1,120 30 30 15,600 15,600 Dividends 3/31 940 Income Summary Retained Earnings Dividends 3/31 940 Income Summary Service Revenue 3/14 3,850 3/28 4,370 3/31 210 Maintenance and Repairs Expense 3601 3/31 Supplies Expense 1,790 3/31 Depreciation Expense 3/31 260 Insurance Expense 400 3/31 Salaries and Wages Expense 1,820 3/20 3/31 1,120 Rent Expense 500 3/31 Interest Expense