Question

Comprehensive Accounting Cycle Review 11-2 (Part Level Submission)

Karen Noonan opened Metlock Inc. on February 1, 2017. During February, the following transactions were completed:

Feb. 1		Issued 4,000 shares of Metlock common stock for $15,600. Each share has a $1.50 par.
1		Borrowed $6,600 on a 2-year, 6% note payable.
1		Paid $10,820 to purchase used floor and window cleaning equipment from a company going out of business ($3,960 was for the floor equipment and $6,860 for the window equipment).
1		Paid $260 for February Internet and phone services.
3		Purchased cleaning supplies for $1,180 on account.
4		Hired 4 employees. Each will be paid $580 per 5-day work week (Monday– Friday). Employees will begin working Monday, February 9.
5		Obtained insurance coverage for $11,040 per year. Coverage runs from February 1, 2017, through January 31, 2018. Karen paid $2,760 cash for the first quarter of coverage.
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 $4,740 cash.
16		Billed customers $4,680 for cleaning services performed through February 13, 2017.
17		Received $468 from a customer for 4 weeks of cleaning services to begin February 21, 2017.
18		Paid $360 on amount owed on cleaning supplies.
20		Paid $3 per share to buy 300 shares of Metlock common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares.
23		Billed customers $5,160 for cleaning services performed through February 20.
24		Paid cash for employees’ wages for 2 weeks (February 9–13 and 16–20).
25		Collected $3,000 cash from customers billed on February 16.
27		Paid $260 for Internet and phone services for March.
28		Declared and paid a cash dividend of $0.30 per share.

a.) Journalize the February transactions.

b.) Post to Ledger Accounts

c.) Prepare Trial Balance

Answer 1

Answer- (a)
	Journal Entry In the Books of Metlock
Date	Particulars	Dr./Cr.	Amount
Feb-01	Bank	Dr	$       15,600
	Common Stock	Cr	$         6,000
	Securites Premium	Cr	$         9,600
	(Being Common stock issued)
Feb-01	Bank	Dr	$         6,600
	Note Payable	Cr	$         6,600
	(Being loan taken at 6% for 2 year)
Feb-01	Floor equipment	Dr	$         3,960
	Window equipment	Dr	$         6,860
	Bank	Cr	$       10,820
	(Being assets purchases)
Feb-01	Internet and phone services	Dr	$             260
	Telephone Supplier	Cr	$             260
	(Being Expenses Paid)
Feb-03	Purchases	Dr	$         1,180
	Supplier	Cr	$         1,180
	(Being Purchases made)
Feb-05	Insurance Charges	Dr	$         1,380
	Prepaid Insurance	Dr	$         1,380
	Bank	Cr	$         2,760
	(Being insurance premium charge and prepaid made considering $2760 for two months only)
Feb-05	Bank	Dr	$         4,740
	Loss on sale of Window equipment	Dr
	Window equipment	Cr	$         6,860
	(Being Asset sold and loss charged)
Feb-16	Bank	Dr	$         4,680
	Sales	Cr	$         4,680
	(Being sale made)
Feb-17	Bank	Dr	$             468
	Sales	Cr	$             117
	Advance from Customer	Cr	$             351
	(Being Sales recorded for 1 week and balance transfer to advance from customer)
Feb-18	Supplier	Dr	$             360
	Bank	Cr	$             360
	(Being amount paid to supplier)
Feb-20	Treasury Share	Dr	$             900
	Bank	Cr	$             900
Feb-23	Debtors	Dr	$         5,160
	Sales	Cr	$         5,160
Feb-24	Salary	Dr	$         4,640
	Bank	Cr	$         4,640
Feb-25	Bank	Dr	$         3,000
	Debtors	Cr	$         3,000
Feb-27	Telephone Supplier	Dr	$             260
	Bank	Cr	$             260
Feb-28	Dividend	Dr	$         1,110
	Bank	Cr	$         1,110
	( on 3700 share only)

I wii post remaining part of answer  in comment very soon.

Thank You .