Question

Lars Linken opened Whispering Winds Cleaners on March 1, 2022. During March, the following transactions were completed.

Mar. 1 Issued 11,000 shares of common stock for $16,500 cash.

1 Borrowed $6,000 cash by signing a 6-month, 6%, $6,000 note payable. Interest will be paid the first day of each subsequent month.

1 Purchased used truck for $8,700 cash.

2 Paid $1,500 cash to cover rent from March 1 through May 31.

3 Paid $2,580 cash on a 6-month insurance policy effective March 1.

6 Purchased cleaning supplies for $1,900 on account.

14 Billed customers $3,400 for cleaning services performed.

18 Paid $400 on amount owed on cleaning supplies.

20 Paid $1,780 cash for employee salaries.

21 Collected $1,800 cash from customers billed on March 14.

28 Billed customers $3,900 for cleaning services performed.

31 Paid $360 for gas and oil used in truck during month (use Maintenance and Repairs Expense).

31 Declared and paid a $900 cash dividend.

The chart of accounts for Whispering Winds Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense.

(a)

Journalize the March transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

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enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Answer 1

Whispering Winds Cleaners
Journal entries
Req a
Date	Account	Debit	Credit
1-Mar	Cash	$     16,500
	Common Stock		$     16,500
1-Mar	Cash	$        6,000
	Notes Payable		$        6,000
1-Mar	Equipment	$        8,700
	Cash		$        8,700
2-Mar	Prepaid Rent	$        1,500
	Cash		$        1,500
3-Mar	Prepaid Insurance	$        2,580
	Cash		$        2,580
6-Mar	Supplies	$        1,900
	Accounts Payable		$        1,900
14-Mar	Accounts Receivable	$        3,400
	Service revenue		$        3,400
18-Mar	Accounts Payable	$           400
	Cash		$           400
20-Mar	Salaries & Wages expense	$        1,780
	Cash		$        1,780
21-Mar	Cash	$        1,800
	Accounts Receivable		$        1,800
28-Mar	Accounts Receivable	$        3,900
	Service revenue		$        3,900
31-Mar	Maintenance and repairs expense	$           360
	Cash		$           360
31-Mar	Dividends	$           900
	Cash		$           900