The following information is a partial list of transactions from Home Cleaning

Service, Inc.:

a. Tina, Don, and Daly each donated $5,000 in exchange for common stock to start the business on January 1, 2011.

b. On March 1, Home Cleaning paid $3,000 cash for a two-year insurance policy that was effective immediately.

c. On March 15, the company purchased $8,000 of supplies on account.

d. On April 5, the company purchased some cleaning equipment for $10,000 cash. The equipment should last for five years with no residual value. Home Cleaning will take a full year of depreciation in 2011.

e. On May 1, Home Cleaning purchased a year’s worth of advertising in a local newspaper for $1,200 cash.

f. On September 1, Home Cleaning obtained a nine-month loan for $15,000 at 5% from City National Bank, with interest and principal payable on June 1, 2012.

g. On December 31, Home Cleaning paid $5,000 of what it owed on account for supplies from item (c); the company had $2,000 of the supplies still on hand at the end of the year.

h. For the year ended December 31, 2011, Home Cleaning had revenues of $26,225. The cash had been received for all but $3,000.

i. Home Cleaning paid $2,000 in cash dividends on December 31, 2011.

Requirements

1. Give the journal entries for the transactions; include any adjusting entries.

2. Post the transactions to T-accounts and prepare the adjusted trial balance at December 31, 2011.

3. Prepare the closing entries and post-closing trial balance for Home Cleaning Service, Inc., at December 31, 2011.