Transaction Entries Thoro Clean, a firm providing house-cleaning services, began business on April 1. The following accounts in its general ledger are needed to record the transactions for April: Cash; Accounts Receivable; Supplies; Prepaid Van Lease; Equipment; Accounts Payable; Notes Payable Common Stock; Retained Earnings; Dividends; Cleaning Fees Earned; Wage Expense; Advertising Expense; and Fuel Expense. April 1 Randy Storm invested $13,000 cash to begin the business; he received common stock for his investment. 2 Paid six months' lease on a van, $3,250. 3 Borrowed $10,400 from a bank and signed a note payable agreeing to repay the $10,400 in one year plus 10 percent interest. 3 Purchased $5,900 of cleaning equipment; paid $2,900 down with the remainder due within 30 days. 4 Purchased cleaning supplies for $4,700 cash. 7 Paid $750 for newspaper advertisements to run during April. 21 Billed customers for services, $4,900. 23 Paid $1,400 on account to cleaning equipment firm (see April 3 transaction). 28 Collected $2,700 from customers on account. 29 Randy Storm received a $1,400 cash dividend. 30 Paid wages for April, $2,150. 30 Paid service station for gasoline used during April, $495. Accounting Equation Journal Entries a. Using the accounting equation, record each of the transactions in columnar format. Use a negative sign with your answers, when needed. Cash + Accounts Receivable + Supplies + Prepaid Van Lease + Equipment = Accounts Payable + Notes Payable + Common Stock + Retained Earnings June $ $ $ $ $ 2 3 3 4 7 21 23 28 29 30 30 $ $ $ $ + $ $ b. Use journal entries to record the transactions for April in the general journal. Description Debit April 1 Date Credit $ $ 44 Owner purchased common stock for cash. 2 Paid six months' lease on van 2 Borrowed money from bank for one year, interest rate of 10% 3 Cash Purchased equipment, made down payment with balance due in 30 days. 4 Purchased supplies for cash. 7 Paid for April advertising 21 Billed customers for Services 23 Payment on account. 28 Collections from customer on account 29 Shareholders are paid a cash dividend. 30 Paid wages for April Paid for gasoline used in April