P4-5A
Laura Eddy opened Eddy's Carpet Cleaners on March 1. During March, the following transactions were completed.

Mar. 1 Issued stock for $10,000 in cash.
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.
5 Paid $1,200 cash on one-year insurance policy effective March 1.
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 $2,500 for cleaning services.
31 Paid gas and oil for month on truck $200.
31 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
J1
Date Description Debit Credit
Mar. 1

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.)

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


Trial Balance


Adjustments


Adjusted Trial Balance


Income Statement
Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash
Accounts Receivable
Cleaning Supplies
Prepaid Insurance
Equipment
Accounts Payable
Common stock
Dividends
Service Revenue
Gas & Oil Expense
Salaries Expense




Totals




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:



$


EDDY'S CARPET CLEANERS
Balance Sheet
March 31, 2008
Assets
Current 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
J2
Date Description Debit Credit
Mar. 31

(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
Da



Optional Information:
Level/Year: 2011
Subject: financial accounting