Mary Maywood opened Maywood Cleaners on March 1, 2022. During March, the following  transactions were completed. Mar.1 Shareholders invested €25,000 cash in the business in exchange for ordinary shares. Mar.1 Borrowed €7,000 cash by signing a 6-month, 8%, €7,000 note payable. Interest will be  paid the first day of each subsequent month. Mar.1 Purchased used truck for €9,000 cash. Mar.2 Paid €2,500 cash to cover rent from March 1 through May 31. Mar.3 Paid €3,400 cash on a 6-month insurance policy effective March 1. Mar.6 Purchased cleaning supplies for €2,000 on account. Mar.14 Billed customers €4,700 for cleaning services performed. Mar.18 Paid €700 on amount owed on cleaning supplies. Mar.20 Paid €1,750 cash for employee salaries. Mar.21 Collected €1,800 cash from customers billed on March 14. Mar.28 Billed customers €4,500 for cleaning services performed. Mar.31 Paid €450 for gas and oil used in truck during month (use Maintenance and Repairs Expense). Mar.31 Declared and paid a €1000 cash dividend.   The chart of accounts for Maywood Cleaners contains the following accounts: Cash, Accounts  Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated  Depreciation—Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable,  Interest Payable, Share Capital—Ordinary, Retained Earnings, Dividends, Income Summary,  Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense,  Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense.   Required:  a. Journalize the March transactions.(Completed) b. Post to the ledger accounts (Use T-accounts.)(Completed) c. Prepare a trial balance at March 31.(Completed)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mary Maywood opened Maywood Cleaners on March 1, 2022. During March, the following 
transactions were completed.
Mar.1 Shareholders invested €25,000 cash in the business in exchange for ordinary shares.
Mar.1 Borrowed €7,000 cash by signing a 6-month, 8%, €7,000 note payable. Interest will be 
paid the first day of each subsequent month.
Mar.1 Purchased used truck for €9,000 cash.
Mar.2 Paid €2,500 cash to cover rent from March 1 through May 31.
Mar.3 Paid €3,400 cash on a 6-month insurance policy effective March 1.
Mar.6 Purchased cleaning supplies for €2,000 on account.
Mar.14 Billed customers €4,700 for cleaning services performed.
Mar.18 Paid €700 on amount owed on cleaning supplies.
Mar.20 Paid €1,750 cash for employee salaries.
Mar.21 Collected €1,800 cash from customers billed on March 14.
Mar.28 Billed customers €4,500 for cleaning services performed.
Mar.31 Paid €450 for gas and oil used in truck during month (use Maintenance and Repairs
Expense).
Mar.31 Declared and paid a €1000 cash dividend.

 

The chart of accounts for Maywood Cleaners contains the following accounts: Cash, Accounts 
Receivable
, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated 
Depreciation
—Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, 
Interest Payable, Share Capital—Ordinary, Retained Earnings, Dividends, Income Summary, 
Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, 
Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense.

 

Required: 
a. Journalize the March transactions.(Completed)
b. Post to the ledger accounts (Use T-accounts.)(Completed)
c. Prepare a trial balance at March 31.(Completed)
d. Journalize the following adjustments.(Please do this sub part)
  1. Services performed but unbilled and uncollected at March 31 were €500.
  2. Depreciation on equipment for the month was €450.
  3. One-sixth of the insurance expired.
  4. An inventory count shows €390 of cleaning supplies on hand at March 31.
  5. Accrued but unpaid employee salaries were €1,080.
  6. One month of the prepaid rent has expired.
  7. One month of interest expense related to the note payable has accrued and will be paid 
April 1.
e. Post adjusting entries to the T-accounts.(Please do this sub part)
f. Prepare an adjusted trial balance.(Please do this sub part)
g. Prepare the income statement and a retained earnings statement for March and a classified 
statement of financial position at March 31.
h. Journalize and post-closing entries and complete the closing process.
i. Prepare a post-closing trial balance at March 31

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