Reference no: EM13601105

Laura Eddy opened Eddy's Carpet Cleaners Inc. on March 1. During March, the following transactions were completed. Mar
1 Invested $10,451 cash in the business.
1 Purchased used truck for $5,760 paying $2,880 cash and the balance on account.
3 Purchased cleaning supplies for $1,115 on account.
5 Paid $1,380 cash on one-year insurance policy effective March 1.
14 Billed customers $4,943 for cleaning services.
18 Paid $1,342 cash on amount owed on truck and $484 on amount owed on cleaning supplies.
20 Paid $1,915 cash for employee salaries.
21 Collected $1,468 cash from customers billed on March 14.
28 Billed customers $2,540 for cleaning services.
31 Paid gas and oil for month on truck $217.
31 Withdrew $766 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.

Instructions
(a) Journalize and post the March transactions. Use page J1 for the journal and the three-column form of account.
(b) Prepare a trial balance at March 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet.
(1) Earned but unbilled revenue at March 31 was $733.
(2) Depreciation on equipment for the month was $248.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $387 of cleaning supplies on hand at March 31.
(5) Accrued but unpaid employee salaries were $539.
(c) Prepare the income statement and owner's equity statement for March and a classified balance sheet at March 31.
(d) Journalize adjusting entries. Use page J2 for the journal.
(e) Journalize the closing entries. Use page J3 for the journal.(f) Post the March transactions and adjusting entries using the three-column form of account. Post the closing entries and complete the closing process.
(f) Prepare a post-closing trial balance at March 31.