Chapter 2, Problem P2.43PS

Journalizing transactions, posting to T-accounts, and preparing a trial balance

Consider the following transactional data for the first month of operations for Crystal Clear Cleaning.

Nov. 1	Aaron Hideaway contributed S 15.000 and a truck, with a market value of $3,000, to the business in exchange for capital.
2	The business paid $4,000 to Pleasant Properties for November through
3	February rent. (Debit Prepaid Rent)
4	Paid $4,800 for a business insurance policy for the term November 1, 2018 through October 31. 2019. (Debit Prepaid Insurance)
5	Purchased cleaning supplies on account, $320.
7	Purchased on account an industrial vacuum cleaner costing $1,500. The invoice is payable November 25.
9	Paid $3,900 for a computer and printer.
10	Performed cleaning services on account in the amount of $4,700.
15	Received $200 for services rendered on November 9.
16	Paid employees, $400.
17	Received SI 5,000 for a 1-year contract beginning November 16 for cleaning services to be provided. Contract begins November 16, 2018, and ends November 15, 2019. (Credit Unearned Revenue)
18	Provided cleaning services and received $400 cash.
20	Received a utility bill for $175 with a due date of December 4, 2018. (Use Accounts Payable)
21	Borrowed $36,000 from bank with interest rate of 6% per year.
25	Received $500 on account for services performed on November 9.
29	Paid $750 on account for vacuum cleaner purchased on November 5.
30	Paid $200 for advertising.

Requirements

1. Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Cleaning Supplies; Prepaid Rent; Prepaid Insurance; Equipment; Truck; Accounts Payable; Unearned Revenue; Notes Payable; Hideaway, Capital; Hideaway, Withdrawals, Service Revenue; Salaries Expense; Advertising Expense; and Utilities Expense. Explanations are not required.
2. Open a T-account for each account.
3. Post the journal entries to the T-accounts, and calculate account balances.
4. Prepare a trial balance as of November 30, 2018.