Print by: Lyndsey Tassin ACCT 2001 Section 4 / Supplemental Assignment #1

*AP4-5A
Laura Eddy opened Eddy's Carpet Cleaners on March 1. During March, the following transactions were completed. Mar. 1 1 3 5 14 18 20 21 28 31 31 Issued stock for $10,000 in cash. Purchased used truck for $6,000, paying $3,000 cash and the balance on account. Purchased cleaning supplies for $1,200 on account. Paid $1,200 cash on one-year insurance policy effective March 1. Billed customers $4,800 for cleaning services. Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies. Paid $1,800 cash for employee salaries. Collected $1,400 cash from customers billed on March 14. Billed customers $2,500 for cleaning services. Paid gas and oil for month on truck $200. Declared and paid a $700 cash dividend.

The chart of accounts for Eddy's Carpet Cleaners contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Common Stock, No. 320, Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense Journalize the March transactions. Use page J1 for the journal. (List amounts from largest to smallest eg 10, 5, 3, 2. If amounts are the same list alphabetically.) General Journal Date Mar. 1 Description Debit J1 Credit

Mar. 1

Mar. 3

Mar. 5

Mar. 14

Mar. 18

Mar.20

Mar. 21

Mar. 28

Mar. 31

Mar. 31

Prepare a trial balance at March 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet. (If answer is zero, please enter 0. Do not leave any fields blank. Ro 1. 2. 3. 4. 5. Earned but unbilled revenue at March 31 was $700. Depreciation on equipment for the month was $250. One-twelfth of the insurance expired. An inventory count shows $400 of cleaning supplies on hand at March 31. Accrued but unpaid employee salaries were $500. EDDY'S CARPET CLEANERS Worksheet For the Month Ended March 31, 2008 Adjusted Trial Balance Cr. Dr. Cr.

Account Titles Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Equipment Accounts Payable Common stock Dividends Service Revenue Gas & Oil Expense Salaries Expense Totals Depreciation

Trial Balance Dr. Cr.

Adjustments Dr.

Income Statement Dr.

Depreciation Expense Accumulated Depreciation Insurance Expense Cleaning Supplies Expense Salaries Payable Totals Net Income Totals Prepare the income statement and retained earnings statement for March and a classified balance sheet at March 31. (List amounts from largest to smallest eg 10, 5, 3, 2. List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2. If answer is zero, please enter 0. Do not leave any fields blank.) EDDY'S CARPET CLEANERS Income Statement For the Month Ended March 31, 2008 Revenues $ Expenses $

Total expenses Net income EDDY'S CARPET CLEANERS Retained Earnings Statement For the Month Ended March 31, 2008 $ Add: $

Less: $

Current Assets

EDDY'S CARPET CLEANERS Balance Sheet March 31, 2008 Assets $

Total current assets Property, plant and equipment $ Less: Total assets Liabilities and Stockholders' Equity $ $

Current liabilities

Total current liabilities Stockholders' Equity $

Total stockholders' equity Total liabilities and stockholders' equity Journalize adjusting entries. Use page J2 for the journal. General Journal Date Mar. 31 Description Debit J2 Credit $

(To adjust accounts receivable.) Mar. 31

(To adjust depreciation.) Mar. 31

(To adjust insurance.) Mar. 31

(To adjust cleaning supplies.)

Mar. 31

(To adjust salaries.) Journalize the closing entries. Use page J3 for the journal. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) General Journal J3 Date Description/Account Debit Credit Mar. 31

(To close revenue account.) Mar. 31

(To close expense accounts.) Mar. 31

(To close net income to capital.) Mar. 31

(To close dividends to capital.) Post the March transactions and adjusting entries using the three-column form of account. Post the closing entries and complete the closing process. (If answer is zero, please enter 0. Do not leave any fields blank.) Cash Date Mar. 1 1 5 18 20 21 31 31 Accounts Receivable Date Explanation Mar. 14 21 28 31 Adjusting Explanation Ref. J1 J1 J1 J1 J1 J1 J1 J1 No. 112 Balance Debit Credit No. 101 Balance

Ref. J1 J1 J1 J2

Debit

Credit

Cleaning Supplies Date Explanation Mar. 3 31 Adjusting

Ref. J1 J2

Debit

Credit

No. 128 Balance

Prepaid Insurance Date Explanation Mar. 5 31 Adjusting

Ref. J1 J2

Debit

Credit

No. 130 Balance

Equipment Date Explanation Mar. 1

Ref. J1

Debit

Credit

No. 157 Balance

Accumulated Depreciation - Equipment Date Explanation Ref. Mar. 31 J2

Debit

Credit

No. 158 Balance

Accounts Payable Date Explanation Mar. 1 3 18 Salaries Payable Date Explanation Mar. 31 Adjusting

Ref. J1 J1 J1

Debit

Credit

No. 201 Balance

Ref. J2

Debit

Credit

No. 212 Balance

Common Stock Date Explanation Mar. 31

Ref. J1

Debit

Credit

No. 311 Balance

Retained Earnings Date Explanation Mar. 1 31 31 Dividends Closing Closing

Ref. J1 J3 J3

Debit

Credit

No. 320 Balance

No. 332

Date Mar. 31 31

Explanation Adjusting

Ref. J1 J3

Debit

Credit

Balance

Income Summary Date Explanation Mar. 31 31 31 Closing Closing Closing

Ref. J3 J3 J3

Debit

Credit

No. 350 Balance

Service Revenue Date Explanation Mar. 14 28 31 31 Adjusting Closing

Ref. J1 J1 J2 J3

Debit

Credit

No. 400 Balance

Gas & Oil Expense Date Explanation Mar. 31 31 Closing

Ref. J1 J3

Debit

Credit

No. 633 Balance

Cleaning Supplies Expense Date Explanation Ref. Mar. 31 31 Adjusting Closing J2 J3

Debit

Credit

No. 634 Balance

Depreciation Expense Date Explanation Mar. 31 31 Adjusting Closing

Ref. J2 J3

Debit

Credit

No. 711 Balance

Insurance Expense Date Explanation Mar. 31 31 Adjusting Closing

Ref. J2 J3

Debit

Credit

No. 722 Balance

Salaries Expense Date Explanation Mar. 20 31 31 Adjusting Closing

Ref. J3 J3 J3

Debit

Credit

No. 726 Balance

Prepare a post-closing trial balance at March 31. (If answer is zero, please enter 0. Do not leave any fields blank.) EDDY'S CARPET CLEANERS Post-Closing Trial Balance March 31, 2008 Account Titles Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salaries Payable Common stock Retained Earnings $ $ $ Trial Balance Dr. $ Cr.

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