Need help walking through this Accounting Cycle Review Lars Linken opened Groupe
ID: 2554648 • Letter: N
Question
Need help walking through this
Accounting Cycle Review Lars Linken opened Grouper Cleaners on March 1, 2017. During March, the following transactions were completed 4-2 Mar. Issued 8,600 shares of common stock for $12,900 cash Borrowed $5,400 cash by signing a 6-month, 6%, $5,400 note payable. Interest will be paid the first day of each subsequent month 1 Purchased used truck for $6,900 cash 2 Paid $1,200 cash to cover rent from March 1 through May 31 3 Paid $2,100 cash on a 6-month insurance policy effective March 1 6 Purchased cleaning supplies for $1,720 on account. 14 Billed customers $3,180 for cleaning services performed 18 Paid $430 on amount owed on cleaning supplies 20 Paid $1,510 cash for employee salaries 21 Collected $1,380 cash from customers billed on March 14 28 Billed customers $3,610 for cleaning services performed 31 Paid $300 for gas and oil used in truck during month (use Maintenance and Repairs Expense) 31 Declared and paid a $770 cash dividend The chart of accounts for Grouper 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, Common Stock, 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 ExpenseExplanation / Answer
All amounts in $
Date Mar
Entry
Debit Amount
Credit Amount
1
Dr Cash
Cr Common Stock
12,900
12,900
1
Dr Cash
Cr Notes Payable
5,400
5,400
1
Dr Equipments
Cr cash
6,900
6,900
2
Dr Prepaid Rent
Cr Cash
1,200
1,200
3
Dr prepaid Insurance
Cr Cash
2,100
2,100
6
Dr Supplies
Cr Bills payable
1,720
1,720
14
Dr Bills Receivable
Cr Service Revenue
3,180
3,180
18
Dr Bills payable
Cr cash
430
430
20
Dr Salary
Cr cash
1,510
1,510
21
Dr Cash
Cr Bills Receivable
1,380
1,380
28
Dr Bills Receivable
Cr Service Revenue
3,610
3,610
31
Dr Maintenance and Repairs
Cr cash
300
300
31
Dr Dividend 770
Cr cash 700
770
770
T Accounts
Cash
Date
Amount
Date
Amount
Mar 1
12,900
Mar 1
6,900
Mar 1
5,400
Mar 2
1,200
Mar 21
1,380
Mar 3
2,100
Mar 18
430
Mar 20
1,510
Mar 31
300
Mar 31
770
6,470
Common Stock
Date
Amount
Date
Amount
Mar 1
12,900
Note payable
Date
Amount
Date
Amount
Mar 1
5,400
Equipments
Date
Amount
Date
Amount
Mar 1
6,900
Prepaid Rent
Date
Amount
Date
Amount
Mar 2
1,200
Prepaid Insurance
Date
Amount
Date
Amount
Mar 3
2100
Supplies
Date
Amount
Date
Amount
Mar 6
1,720
Bills Payable
Date
Amount
Date
Amount
Mare
430
Mar 6
1,720
1,290
Bills Receivable
Date
Amount
Date
Amount
Mar 14
3,180
Mar 21
1,380
Mar 28
3,610
5410
Service Revenue
Date
Amount
Date
Amount
Mar 14
3,180
6,790
Mar 28
3,610
Salary
Date
Amount
Date
Amount
Mar 20
1,510
Maintenance expense
Date
Amount
Date
Amount
Mar 31
300
Dividend
Date
Amount
Date
Amount
Mar 31
770
Trail Balance
Account Name
Debit Amount
Credit Amount
Cash
6,470
Common Stock
12,900
Note payable
5,400
Equipments
6,900
Prepaid Rent
1,200
Prepaid Insurance
2,100
Supplies
1,720
Bills Payable
1,290
Bills Receivables
5,410
Service revenue
6,790
Salary
1,510
Maintenance
300
Dividend
770
Total
26380
2,6380
Adjusting Journal Entry’s
Date
Entry
Debit Amount
Credit Amount
March 31
Dr Service Revenue accrued
Cr Service Revenue
170
170
March 31
Dr Depreciation
Cr Equipment
220
220
March 31
Dr Insurances expense
Cr Prepaid Insurances
350
350
March 31
Dr Supplies expenses
Cr Supplies
1,480
1,480
March 31
Dr Salary
Cr Salary Payable
930
930
March 31
Dr Rent
Cr Prepaid Rent
400
400
March 31
Dr interest expense
Cr interest payable
27
527
Adjusted T Accounts
Cash
Date
Amount
Date
Amount
Mar 1
12,900
Mar 1
6,900
Mar 1
5,400
Mar 2
1,200
Mar 21
1,380
Mar 3
2,100
Mar 18
430
Mar 20
1,510
Mar 31
300
Mar 31
770
6,470
Common Stock
Date
Amount
Date
Amount
Mar 1
12,900
Note payable
Date
Amount
Date
Amount
Mar 1
5,400
Equipments
Date
Amount
Date
Amount
Mar 1
6,900
March 31
220
6,680
Prepaid Rent
Date
Amount
Date
Amount
Mar 2
1,200
March 31
400
800
Prepaid Insurance
Date
Amount
Date
Amount
Mar 3
2,100
Mar 31
350
1750
Supplies
Date
Amount
Date
Amount
Mar 6
1720
March 31
1480
240
Bills Payable
Date
Amount
Date
Amount
Mare
430
Mar 6
1,720
1,290
Bills Receivable
Date
Amount
Date
Amount
Mar 14
3,180
Mar 21
1,380
Mar 28
3,610
5,410
Service Revenue
Date
Amount
Date
Amount
Mar 14
3,180
Mar 28
3,610
6,960
March 31
170
Salary
Date
Amount
Date
Amount
Mar 20
1510
March 31
930
2440
Maintenance expense
Date
Amount
Date
Amount
Mar 31
300
Dividend
Date
Amount
Date
Amount
Mar 31
770
Accrued revenue
Date
Amount
Date
Amount
March 31
170
Interest Expense
Date
Amount
Date
Amount
March 31
27
Interest Expense Payable
Date
Amount
Date
Amount
March 31
27
Insurance expenses
Date
Amount
Date
Amount
March 31
350
Supply Expenses
Date
Amount
Date
Amount
March 31
1,480
Salary payable
Date
Amount
Date
Amount
March 31
930
Rent
Date
Amount
Date
Amount
March 31
400
Depreciation Expenses
Date
Amount
Date
Amount
March 31
220
Adjusted Trial Balance
Account Name
Debit Amount
Credit Amount
Cash
6,470
Common Stock
12,900
Note payable
5,400
Equipments
6,680
Prepaid Rent
8,00
Prepaid Insurance
1,750
Supplies
240
Bills Payable
1.290
Bills Receivables
5,410
Service revenue
6,960
Salary
2,440
Maintenance
300
Dividend
770
Service Revenue accrued
170
Interest Expense
27
Interest expense Payable
27
Insurance expense
350
Rent
400
Salary Expense payable
930
Supply Expense
1,480
Depreciation
220
Total
27,507
27,507
Cash
Date
Amout
Date
Amount
March 1
12900
Mar1
5400
Common Stock
Date
Amout
Date
Amount
March 1
12900
Notes Payable
Date
Amout
Date
Amount
Mar 1
5400
Date Mar
Entry
Debit Amount
Credit Amount
1
Dr Cash
Cr Common Stock
12,900
12,900
1
Dr Cash
Cr Notes Payable
5,400
5,400
1
Dr Equipments
Cr cash
6,900
6,900
2
Dr Prepaid Rent
Cr Cash
1,200
1,200
3
Dr prepaid Insurance
Cr Cash
2,100
2,100
6
Dr Supplies
Cr Bills payable
1,720
1,720
14
Dr Bills Receivable
Cr Service Revenue
3,180
3,180
18
Dr Bills payable
Cr cash
430
430
20
Dr Salary
Cr cash
1,510
1,510
21
Dr Cash
Cr Bills Receivable
1,380
1,380
28
Dr Bills Receivable
Cr Service Revenue
3,610
3,610
31
Dr Maintenance and Repairs
Cr cash
300
300
31
Dr Dividend 770
Cr cash 700
770
770