The following information was provided by the records of Clifford's Cleaning Company at the end of the annual fiscal period. December 31. 2003:

Required:
Using T-accounts. compute the amounts that should be reported in Clifford's 2003 financial statements for the following items and indicate on which financial statement the item is located. For cash, create one T-account and label each effect to determine the amounts from customers, to suppliers, and to employees: 1. Service revenue 2. Cash to employees 3. Cleaning supplies expense 4. Receivables from customers 5. Cash to suppliers 6. Cleaning supplies 7. Wages expense 8. Cash from customers 9. Unearned revenue 10. Wages payable.

Transcribed Image Text:

Cash Receipts a. Collected cash in January 2003 for the only cleaning contracts completed in past years that were not yet paid by customers. b. Service revenue collected in cash during 2003 for cleaning contracts in 2003. Service revenue earned for contracts in December 2003; not collected until 2004. C. d. In December 2003, collected contract revenue in advance for January 2004. Cash Disbursements for Salaries e. Cash payment made in January 2003 for employee salaries earned in 2002; no other amounts were due to employees for past periods. f. Salaries incurred and paid during 2003. g. Salaries earned by employees during December 2003 that will be paid in January 2004. Cash Disbursements for Supplies h. Cleaning supplies on hand on January 1, 2003. i. Cleaning supplies purchased for cash during 2003. j. Cleaning supplies counted on December 31. 2003. $ 11,000 213.000 14.000 19.000 1.500 78,000 1.900 1.800 14,500 2.700