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The Angelas home cleaning ltd provides home cleaning services. The following is the 1 March 2020 Trial Balance (TB). The company has not made all the March entries but the required info is given below. You will be asked to update the accounts as at 31 March 2020.
angelas Cleaning COMPANY
Angelas
Unadjusted Trial Balance
1 March 2020
Cash...................................................................................... $ 5,700
Accounts receivable........................................................... 1,800
Cleaning supplies............................................................... 800
Accounts payable............................................................... 300
Dividend payable................................................................ 500
Dividends ............................................................................ 500 Capital Stock ............................................................................................... 6,000
Retained earnings............................................................... 1,400
Client revenue..................................................................... 5,800
Salaries expense................................................................ 3,100
Travel expense.................................................................... 1,500
Printing expense ................................................................ 600
$14,000 $14,000
the following transaction happened in march
Mar 10 Purchased a car for the business. Paid cash amounting to USD4,000 Mar 10 -Decided to give to its senior director gym membership for 12 months starting 1 Mar for USD600 for the year. This was paid on 10 March. Mar. 15. Collected USD600 from client recorded on accounts receivable Mar. 16 Issued shares for USD2,000 Mar. 16 Purchased cooking supplies for USD600 and paid for it via notes payable. The notes payable is due in 6 months time at interest rate of 4%.
ADJUSTING ENTRIES
Mar 31 Made an accrual for staff bonuses of USD1,000 payable in April. Mar 31 Billed home owners on sales of USD2,000 and the amount if due in May 2020 Mar 31 Recorded and paid Mar salaries of USD700 Mar 31 Made an accrual for tax of USD400 and March telephone bill for USD120 . Mar 31 wrote off bad debts of USD50 in accounts receivable. Mar 31- Record interest for notes payable item 5 Instructions
For each of the above data prepare journal entries and show the T accounts. 15% Prepare a new trial balance after including these additional adjusting entries. 10% Prepare an income statement 10% Prepare a balance sheet 10% Please show any working where required.
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