Dec. Monica's Cleaning Service began operations by receiving $30,000 cash and 1 cleaning equipment with a fair value of $10,000 from Monica. The business issued Monica capital in exchange for this contribution. Paid $1,200 cash for a six-month insurance policy. The policy begins December 1. Paid $1,000 cash for supplies. 1 4 12 Performed cleaning services for a customer and received $2,700 cash. 15 Completed a large cleaning job, billed the customer, $3,300, and received a promise to collect the $3,300 within one week. 18 Paid employee salary, $8,800. 20 Received $6,500 cash for performing cleaning services. 22 Collected $1,800 in advance for cleaning service to be performed later. 25 Collected $3,300 cash from customer on account. 27 Purchased soap for the cleaning equipment, paying $150 on account. (Debit Cleaning Expense) 28 Performed cleaning services on account, $2,900. 29 Paid office rent, $1,400, for the month of December. 30 Paid $150 on account. 31 Monica withdrew cash of $2,500. Requirements 1. Record each transaction in the journal using the following chart of accounts. Explanations are not required. Cash Accounts Receivable Supplies Prepaid Insurance Cleaning Equipment Accumulated Depreciation- Cleaning Equipment Accounts Payable Salaries Payable Uneamed Revenue Monica, Capital Monica, Withdrawals Income Summary Service Revenue Salaries Expense Depreciation Expense Cleaning Equipment Insurance Expense Cleaning Expense Rent Expense Supplies Expense
Dec. Monica's Cleaning Service began operations by receiving $30,000 cash and 1 cleaning equipment with a fair value of $10,000 from Monica. The business issued Monica capital in exchange for this contribution. Paid $1,200 cash for a six-month insurance policy. The policy begins December 1. Paid $1,000 cash for supplies. 1 4 12 Performed cleaning services for a customer and received $2,700 cash. 15 Completed a large cleaning job, billed the customer, $3,300, and received a promise to collect the $3,300 within one week. 18 Paid employee salary, $8,800. 20 Received $6,500 cash for performing cleaning services. 22 Collected $1,800 in advance for cleaning service to be performed later. 25 Collected $3,300 cash from customer on account. 27 Purchased soap for the cleaning equipment, paying $150 on account. (Debit Cleaning Expense) 28 Performed cleaning services on account, $2,900. 29 Paid office rent, $1,400, for the month of December. 30 Paid $150 on account. 31 Monica withdrew cash of $2,500. Requirements 1. Record each transaction in the journal using the following chart of accounts. Explanations are not required. Cash Accounts Receivable Supplies Prepaid Insurance Cleaning Equipment Accumulated Depreciation- Cleaning Equipment Accounts Payable Salaries Payable Uneamed Revenue Monica, Capital Monica, Withdrawals Income Summary Service Revenue Salaries Expense Depreciation Expense Cleaning Equipment Insurance Expense Cleaning Expense Rent Expense Supplies Expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
3 and 4
Transcribed Image Text:2. Post the transactions in the T-accounts.
3. Prepare an unadjusted trial balance as of December 31, 2022.
4. Journalize the adjusting entries using the following adjustment data and also by
reviewing the journal entries prepared in Requirement 1. Post adjusting entries to the T-
accounts.
Adjustment data:
a. Accrued Salaries Expense, $1,000.
b. Depreciation was recorded on the cleaning equipment using the straight-line method.
Assume a useful life of five years and a salvage value of $3,000.
c. Prepaid Insurance for the month has expired.
d. Supplies on hand, $450.
e. Unearned Revenue earned during the month, $800.
f. Accrued Service Revenue, $650.
5. Prepare an adjusted trial balance as of December 31, 2022.
6. Prepare Monica's Cleaning Service's income statement and statement of owner's equity
for the month ended December 31, 2022, and the classified balance sheet on that date.
7. Journalize the closing entries, and post to the T-accounts.
8. Prepare a post-closing trial balance as of December 31, 2022.
ER M
Transcribed Image Text:Monica's Cleaning Service completed the following transactions during December 2022:
Dec. Monica's Cleaning Service began operations by receiving $30,000 cash and
1 cleaning equipment with a fair value of $10,000 from Monica. The business
issued Monica capital in exchange for this contribution.
Paid $1,200 cash for a six-month insurance policy. The policy begins December 1.
Paid $1,000 cash for supplies.
1
4
12 Performed cleaning services for a customer and received $2,700 cash.
15 Completed a large cleaning job, billed the customer, $3,300, and received a
promise to collect the $3,300 within one week.
18
Paid employee salary, $8,800.
20 Received $6,500 cash for performing cleaning services.
22 Collected $1,800 in advance for cleaning service to be performed later.
25
Collected $3,300 cash from customer on account.
27 Purchased soap for the cleaning equipment, paying $150 on account. (Debit
Cleaning Expense)
28
Performed cleaning services on account, $2,900.
29 Paid office rent, $1,400, for the month of December.
30
Paid $15
account.
31 Monica withdrew cash of $2,500.
Requirements
1. Record each transaction in the journal using the following chart of accounts.
Explanations are not required.
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Cleaning Equipment
Accumulated Depreciation-
Cleaning Equipment
Accounts Payable
Salaries Payable
Uneamed Revenue
Monica, Capital
M
Monica, Withdrawals
Income Summary
Service Revenue
Salaries Expense
Depreciation Expense
Cleaning Equipment
Insurance Expense
Cleaning Expense
Rent Expense
Supplies Expense
hp
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