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Comprehenslve Accounting Cycle Revlew 11-02 (Part Level Submisslon) Karen Noonan opened Shamrock Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Issued 4,200 shares of Shamrock Cleaning Services common stock for $10,920. Each share has a $1.50 par Borrowed $6,720 on a 2-year, 6% note payable. Paid $7,580 to purchase used floor and window cleaning equipment from a company going out of business ($4,050 was for the floor equipment and $3,530 for the window equipment). Paid $180 for February Internet and phone services. Purchased cleaning supplies for $820 on account. Feb. 1 1 1 Hired 4 employees. Each will be paid $400 per 5-day work week (Monday- Friday). 4 Employees wili begin working Monday, February 9. Obtained insurance coverage for $8,270 per year. Coverage runs from February 1, 2022, 5 through January 31, 2023. Karen paid $2,068 cash for the first quarter of coverage. Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window cleaning equipment for $3,320 cash Billed customers $3,280 for cleaning services performed through February 13, 2022. Received $468 from a customer for 4 weeks of cleaning services to begin February 21, 2022. (By paying in advance, this customer received 10 % off the normal weekly fee of $130.) Paid $250 on amount owed on cleaning supplies. Paid $3 per share to buy 250 shares of Shamrock Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. Billed customers $3,610 for cleaning services performed through February 20. Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). Collected $2,100 cash from customers billed on February 16. Paid $180 for Internet and phone services for March. Declared and paid a cash dividend of $0.30 per share. 16 17 18 20 23 24 25 27 28 un Ln Your answer is partially correct. Try again. Journalize the following adjustments. (Credit account titles are automatically indented when amount is entered. Do not indent mam required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in answers to 0 decimal places, e.g. 1,527.) Services performed for customers through February 27, 2022, but unbilled and uncollected were $3,190. 1. Received notice that a customer who was billed $170 for services performed February 10 has filed 2. for bankruptcy. Shamrock Cleaning Services does not expect to collect any portion of this outstanding receivable. Shamrock Cleaning Services uses the allowance method to estimate bad debts. Shamrock Cleaning Services estimates that 3% of its month-end receivables will not be collected. 3. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $420 salvage value 4. Record 1 month of insurance expense. 5. An inventory count shows $340 of supplies on hand at February 28. 6. One week of services were performed for the customer who paid in advance on February 17. Accrue for wages owed through February 28, 2022. Accrue for interest expense for 1 month. 7. 8. 9. Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.) 10. No. Account Titles and Explanation Debit Credit 1. Accounts Receivable 3190 Service Revenue 3190 2 Allowance for Doubtful Accounts 170 Accounts Receivable 170 3. Bad Debt Expense 404 Allowance for Doubtful Accounts 404 4. Depreciation Expense 76 Accumulated Depreciation-Equipment 76 5. Insurance Expense 57 Prepaid Insurance 57 6. Supplies Expense 480 Supplies 480 7. Unearned Service Revenue 117 Service Revenue 117 117 7. Unearned Service Revenue 117 Service Revenue 1680 8. Salaries and Wages Expense 1680 Salaries and Wages Payable 9 Interest Expense 34 34 Interest Payable 10 Income Tax Expense 943 Income Taxes Payable 943 Open Show Work Click if you would like to Show Work for this

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