Helga Kohl opened Helga's Carpet Cleaners Inc. on March 1. During March, the following transactions were completed.

Mar 1 Issued \(\$ 10,000\) of common stock for \(\$ 10,000\) cash.

1 Purchased used truck for \(\$ 6,000\), paying \(\$ 4,000\) cash and the balance on account.

3 Purchased cleaning supplies for \(\$ 1,200\) on account.

5 Paid \(\$ 1,800\) cash on one-year insurance policy effective March 1.

14 Billed customers \(\$ 2,800\) for cleaning services.

18 Paid \(\$ 1,500\) cash on amount owed on truck and \(\$ 500\) on amount owed on cleaning supplies.

20 Paid \(\$ 1,500\) cash for employee salaries.

21 Collected \(\$ 1,600\) cash from customers billed on July 14 .

28 Billed customers \(\$ 3,200\) for cleaning services.

31 Paid gas and oil for month on truck \(\$ 200\).

31 Declared and paid \(\$ 900\) cash dividend.

The chart of accounts for Helga's Carpet Cleaners Inc. contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Fees Earned, No. 633 Gas \& Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, No. 726 Salaries Expense.

\section*{Instructions}

(a) Journalize and post the March transactions. Use page J1 for the journal and the threecolumn form of account.

(b) Prepare a trial balance at March 31 on a work sheet.

(c) Enter the following adjustments on the work sheet and complete the work sheet.

(1) Earned but unbilled fees at March 31 were \(\$ 600\).

(2) Depreciation on equipment for the month was \(\$ 250\).

(3) One-twelfth of the insurance expired.

(4) An inventory count shows \(\$ 400\) of cleaning supplies on hand at March 31.

(5) Accrued but unpaid employee salaries were \(\$ 500\).

(d) Journalize and post adjusting entries. Use page J2 for the journal.

(e) Prepare the income statement and retained earnings statement for March and a classified balance sheet at March 31.

(f) Journalize and post closing entries and complete the closing process. Use page J3 for the journal.

(g) Prepare a post-closing trial balance at July 31.