Reference no: EM133117941
Question - Karen Noonan opened Marin Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed:
Feb. 1 Issued 3,900 shares of Marin Cleaning Services common stock for $10,140. Each share has a $1.50 par.
Feb. 1 Borrowed $6,240 on a 2-year, 6% note payable.
Feb. 1 Paid $7,040 to purchase used floor and window cleaning equipment from a company going out of business ($3,760 was for the floor equipment and $3,280 for the window equipment).
Feb. 1 Paid $170 for February Internet and phone services.
Feb. 3 Purchased cleaning supplies for $760 on account.
Feb. 4 Hired 4 employees. Each will be paid $370 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9.
Feb. 5 Obtained insurance coverage for $7,680 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $1,920 cash for the first quarter of coverage.
Feb. 5 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 $3,080 cash.
Feb. 16 Billed customers $3,040 for cleaning services performed through February 13, 2022.
Feb. 17 Received $432 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 $120.)
Feb. 18 Paid $230 on amount owed on cleaning supplies.
Feb. 20 Paid $3 per share to buy 230 shares of Marin Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares.
Feb. 23 Billed customers $3,350 for cleaning services performed through February 20.
Feb. 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20).
Feb. 25 Collected $1,950 cash from customers billed on February 16.
Feb. 27 Paid $170 for Internet and phone services for March.
Feb. 28 Declared and paid a cash dividend of $0.25 per share.
Required - Post to the ledger accounts.