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Final 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
Final 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 Comman Stock; Retained Earnings: Dividends; Cleaning Fees Earned; Wage Expense; Advertising Expense; and Fuel Expense. Apri 1 Randy Smith invested $14,00 cash tr begin the business; he received commen stock for his investment. 2 Paid six months' lease on a van, $2.850. 3 Borawed $10,00 fram a bank and signed a note payahle agreeing ta rapay the $11,0 in ane year plus 10 percent interest. 3 Purchased S5,500 of cleaning ecuipment paid $2.000 down with the remainder due within 30 days. 4 Purchased cleaning supplies for $4,310 cash. 7 Paid $350 for newspaper atvertiserments tu run durirg April. 21 BIlled customers for services, $3,500 23 Paid $1,50t on account to ciearing eguipmerit firm (see Apri 3 transaction) 28 Collected $2,300 from customers on account. 29 Randy Smith received a $1,on0 cash divided. 30 Paid wages for April, $1,750 20 Paid service statian for gasoline used during April, $350. Accounting Equation Journal Entries a. Using the accounting equation, record each of the transactions in columnar format. Use negative signs with your answers below, when appropriate. + Accounts Receivable + + + Prepaid Van Lease + Fquipment - Accounts Payable + Notes Payable + Common Stock + Retained Farnings Cash Supplies Apri 1s 4. 21 23 28 I! 29 30 20
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