P4-8B Geog Lav opened Geog Cleaners on March 1, 2014. During March, the following transactions were completed. Issued 10,000 shares of common stock for $15,000 cash. Purchased used truck for $8,000, paying $3,000 cash and the balance on Mar. 1 1 account. Purchased cleaning supplies for $2,000 on account. 5 Paid $2,400 cash on a 6-month insurance policy effective March 1. 14 Billed customers $3,700 for cleaning services. 18 Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies. 20 Paid $1,750 cash for employee salaries. 21 3 Collected $1,600 cash from customers billed on March 14. 28 Billed customers $4,200 for cleaning services. 31 Paid $350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a $900 cash dividend. The chart of accounts for Geog Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equip- ment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Sup- plies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense.
P4-8B Geog Lav opened Geog Cleaners on March 1, 2014. During March, the following transactions were completed. Issued 10,000 shares of common stock for $15,000 cash. Purchased used truck for $8,000, paying $3,000 cash and the balance on Mar. 1 1 account. Purchased cleaning supplies for $2,000 on account. 5 Paid $2,400 cash on a 6-month insurance policy effective March 1. 14 Billed customers $3,700 for cleaning services. 18 Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies. 20 Paid $1,750 cash for employee salaries. 21 3 Collected $1,600 cash from customers billed on March 14. 28 Billed customers $4,200 for cleaning services. 31 Paid $350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a $900 cash dividend. The chart of accounts for Geog Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equip- ment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Sup- plies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P4-8B Geog Lav opened Geog Cleaners on March 1, 2014. During March, the following
transactions were completed.
Issued 10,000 shares of common stock for $15,000 cash.
Purchased used truck for $8,000, paying $3,000 cash and the balance on
Mar. 1
1
account.
3
Purchased cleaning supplies for $2,000 on account.
Paid $2,400 cash on a 6-month insurance policy effective March 1.
Billed customers $3,700 for cleaning services.
18
14
Paid $1,500 cash on amount owed on truck and $500 on amount owed on
cleaning supplies.
20
Paid $1,750 cash for employee salaries.
Collected $1,600 cash from customers billed on March 14.
28
21
Billed customers $4,200 for cleaning services.
31
Paid $350 for gas and oil used in truck during month (use Maintenance and
Repairs Expense).
31
Declared and paid a $900 cash dividend.
The chart of accounts for Geog Cleaners contains the following accounts: Cash, Accounts
Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equip-
ment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings,
Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Sup-
plies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense.
Instructions
1. Services performed but unbilled at March 31 was $200.
2. Depreciation on equipment for the month was $250.
3. One-sixth of the insurance expired.
4. An inventory count shows $280 of cleaning supplies on hand at March 31.
5. Accrued but unpaid employee salaries were $1,080.
(e) Post adjusting entries to the T-accounts.
(f) Prepare an adjusted trial balance.
(g) Prepare the income statement and a retained earnings statement for March and a
classified balance sheet 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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