Reference no: EM132855281

Question - Purchased used truck for $6,000, paying $3,000 cash and the balance on account.

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

Mar. 1 Invested $10,000 cash in the business.

Mar. 3 Purchased cleaning supplies for $1,200 on account.

Mar. 5 Paid $1,200 cash on one-year insurance policy effective March 1.

Mar. 14 Billed customers $4,800 for cleaning services.

Mar. 18 Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies.

Mar. 20 Paid $1,800 cash for employee salaries.

Mar. 21 Collected $1,400 cash from customers billed on March 14.

Mar. 28 Billed customers $2,500 for cleaning services.

Mar. 31 Paid gas and oil for month on truck $200.

Mar. 31 Withdrew $700 cash for personal use.

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. 301 L. Eddy, Capital; No. 306, L. Eddy, Drawing; 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.

Required -

(a) Journalize and post the March transactions.

(b) Prepare trial balance at March 31 on a worksheet.