Answered step by step
Verified Expert Solution
Question
1 Approved Answer
This is the original question, I just need help with this portion :) Comprehensive Accounting Cycle Review 11-02 (Part Level Submission) Karen Noonan opened Marin
This is the original question, I just need help with this portion :)
Comprehensive Accounting Cycle Review 11-02 (Part Level Submission) Karen Noonan opened Marin Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 Issued 3,900 shares of Marin Cleaning Services common stock for $10,140. Each share has a $1.50 par. 1 Borrowed $6,240 on a 2-year, 6% note payable. 1 Paid $7,040 to purchase used floor and window cleaning equipment from a company going out of business ($3,760 was for the floor equipment and $3,280 for the window equipment). 1 Paid $170 for February Internet and phone services. Purchased cleaning supplies for $760 on account. 4 Hired 4 employees. Each will be paid $370 per 5-day work week (Monday-Friday). Employees will begin working Monday, February 9. 5 Obtained insurance coverage for $7,680 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $1,920 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 $3,080 cash. 16 Billed customers $3,040 for cleaning services performed through February 13, 2022 17 Received $432 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 $120.) 18 Paid $230 on amount owed on cleaning supplies. 20 Paid $3 per share to buy 230 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 $3,350 for cleaning services performed through February 20. 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). 25 Collected $1,950 cash from customers billed on February 16. 27 Paid $170 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.25 per share. (d) Your answer is partially correct. Try again. Journalize the following adjustments. (Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem. Round answers to O decimal places, e.g. 1,527.) 1. 2. 3. Services performed for customers through February 27, 2022, but unbilled and uncollected were $2,960. Received notice that a customer who was billed $160 for services performed February 10 has filed for bankruptcy. Marin Cleaning Services does not expect to collect any portion of this outstanding receivable. Marin Cleaning Services uses the allowance method to estimate bad debts. Marin Cleaning Services estimates that 3% of its month-end receivables will not be collected. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $390 salvage value. Record 1 month of insurance expense. An inventory count shows $310 of supplies on hand at February 28. One week of services were performed for the customer who paid in advance on February 17. Accrue for wages owed through February 28, 2022. Accrue for interest expense for 1 month. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.) 8. 9. 10. No. Account Titles and Explanation Debit Credit 1. Accounts Receivable Service Revenue 2960 2. Allowance for Doubtful Accounts No. Account Titles and Explanation Debit Credit 1. Accounts Receivable Service Revenue 260 2. Allowance for Doubtful Accounts | Accounts Receivable Accounts Receivable 160 3. Taad Debt Expense Allowance for Doubtful Accounts 4. Depreciation Expense Accumulated Depreciation Equipment 1663 5. Insurance Expense Cash 6. Supplies Expense Supplies 450 7. Tunearned Service Revenue Service Revenue 7. Unearned Service Revenue 432 Service Revenue 432 8. Tsalaries and Wages Expense 1110 10 Salaries and Wages Payable 1110 ODDDDDDD 9. Tinterest Expense 230 Interest Payable 230 10. Income Tax Expense 200 Income Taxes Payable Income Taxes Payable 200) Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started