Lars Linken opened Sheffield Cleaners on March 1, 2017. During March, the following transactions were...
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Accounting
Lars Linken opened Sheffield Cleaners on March 1, 2017. During March, the following transactions were completed.
Mar. 1
Issued 10,800 shares of common stock for $16,200 cash.
1
Borrowed $6,600 cash by signing a 6-month, 6%, $6,600 note payable. Interest will be paid the first day of each subsequent month.
1
Purchased used truck for $8,600 cash.
2
Paid $1,500 cash to cover rent from March 1 through May 31.
3
Paid $2,700 cash on a 6-month insurance policy effective March 1.
6
Purchased cleaning supplies for $2,160 on account.
14
Billed customers $4,000 for cleaning services performed.
18
Paid $540 on amount owed on cleaning supplies.
20
Paid $1,890 cash for employee salaries.
21
Collected $1,730 cash from customers billed on March 14.
28
Billed customers $4,540 for cleaning services performed.
31
Paid $380 for gas and oil used in truck during month (use Maintenance and Repairs Expense).
31
Declared and paid a $970 cash dividend.
1.Services performed but unbilled and uncollected at March 31 was $220.2.Depreciation on equipment for the month was $270.3.One-sixth of the insurance expired.4.An inventory count shows $300 of cleaning supplies on hand at March 31. 5.Accrued but unpaid employee salaries were $1,170.6.One month of the prepaid rent has expired.7.One month of interest expense related to the note payable has accrued and will be paid April 1.
