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tions were completed. Mar. 1 Shareholders invested 15,000 cash in the business in exchange for ordinary shares. 1 Borrowed 6,000 cash by signing a 6-month,

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tions were completed. Mar. 1 Shareholders invested 15,000 cash in the business in exchange for ordinary shares. 1 Borrowed 6,000 cash by signing a 6-month, 6%, 6,000 note payable. Interest will be paid the first day of each subsequent month. 1 Purchased used truck for 8,000 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 2,000 on account. 14 Billed customers 3,700 for cleaning services performed. 18 Paid 500 on amount owed on cleaning supplies. 20 Paid 1,750 cash for employee salaries. 21 Collected 1,600 cash from customers billed on March 14. 28 Billed customers 4,200 for cleaning services performed. 31 Paid 350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a 900 cash dividend. The chart of accounts for Lars Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Ac- counts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Share Capital Ordinary, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Ex- pense, and Interest Expense. d. Journalize the following adjustments. 1. Services performed but unbilled and uncollected at March 31 were 200. 2. Depreciation on equipment for the month was 250. 3. One-sixth of the insurance expired. 4. An inventory count shows 280 of cleaning supplies on hand at March 31. 5. Accrued but unpaid employee salaries were 1,080. 6. One month of the prepaid rent has expired. 7. One month of interest expense related to the note payable has accrued and will be paid April 1. (Hint: Use the formula from Illustration 3.17 to compute interest.)

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