aners on March 1, 2021. During March, the following transactions were completed. Mar. 1: Invested $15,000 cash in the business. Mar. 1: Purchased used Lorry for $6,000, paying $3,000 cash and the balance on account. Mar. 3: Purchased cleaning supplies for $1,500 on account. Mar. 5: Paid $1,200 cash on one-year insurance policy effective March 1. Mar. 14: Billed customers $4,800 for cleaning services. Mar. 18: Paid $1,500 cash on amount owed on Lorry and $500 on amount owed on cleaning supplies. Mar. 20: Paid $2,000 cash for employee salaries. Mar. 21: Collected $2,800 cash from customers billed on March 14. Mar. 28: Billed customers $2,500 for cleaning services. Mar. 31: Paid advertising expenses of $500.
Mr. Arish opened Arish’s Carpet Cleaners on March 1, 2021. During March, the following
transactions were completed.
Mar. 1: Invested $15,000 cash in the business.
Mar. 1: Purchased used Lorry for $6,000, paying $3,000 cash and the balance on
account.
Mar. 3: Purchased cleaning supplies for $1,500 on account.
Mar. 5: Paid $1,200 cash on one-year insurance policy effective March 1.
Mar. 14: Billed customers $4,800 for cleaning services.
Mar. 18: Paid $1,500 cash on amount owed on Lorry and $500 on amount owed on
cleaning supplies.
Mar. 20: Paid $2,000 cash for employee salaries.
Mar. 21: Collected $2,800 cash from customers billed on March 14.
Mar. 28: Billed customers $2,500 for cleaning services.
Mar. 31: Paid advertising expenses of $500.
Mar. 31: Withdrew $1000 cash for personal use.
Requirements:
d) Journalize the following adjustments and prepare an adjusted
(i) Earned but unbilled revenue at March 31 was $500.
(ii) Depreciation on equipment for the month was $200.
(iii) One-twelfth of the insurance expired.
(iv) An inventory count shows $400 of cleaning supplies on hand at March 31.
(v) Accrued but unpaid employee salaries were $700.
e) Prepare the Income Statement and Owner’s Equity Statement for March and a classified Financial Position at March 31.
f) Journalize Closing Entries.
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