Please do adjustments. Mar. 1Stockholders invested $10,000 cash in the business
ID: 2607018 • Letter: P
Question
Please do adjustments.
Mar. 1Stockholders invested $10,000 cash in the business in exchange for common stock. 1 Purchased used truck for $6,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,200 on account. (Hint: An Asset NOT an expense since the supplies have NOT yet been "used-up) 5 Paid $1,200 cash on a 1-year insurance policy effective March 1. (Hint: as above) 14 Billed customers $4,800 for cleaning services. 18 Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies 20 Paid $1,800 cash for employee salaries. 21 Collected $1,400 cash from customers billed on March 14 28 Billed customers S4500 for cleaning services. 31 Paid $500 for the monthly gasoline bill for the truck 31 paid a $700 cash dividend.Explanation / Answer
Adjusting Entries are made as follows.
Date Accounts Debit Credit March 1 Cash $ 10,000 Common stock $ 10,000 1 Equipment (Truck) $ 6,000 Cash $ 3,000 Accounts payable $ 3,000 5 Insurance Expense(1200/12) $ 100 Prepaid Insurance $ 1,100 Cash $ 1,200 14 Account Receivable (Cleaning Service) $ 4,800 Service Revenue $ 4,800 18 Accounts payable (Truck) $ 1,500 Accounts payable (Cleaning Supplies) $ 500 Cash $ 2,000 20 Salaries and Wages Expneses $ 1,800 Cash $ 1,800 21 Cash $ 1,400 Account Receivable (Cleaning Service) $ 1,400 28 Account Receivable (Cleaning Service) $ 4,500 Service Revenue $ 4,500 31 Gasoline Expenses $ 500 Cash $ 500 31 Dividend $ 700 Cash $ 700