Question

Accounting Cycle Review 4-2 (Part Level Submission)

Lars Linken opened Sheffield Cleaners on March 1, 2017. During March, the following transactions were completed.

Mar. 1		Issued 10,800 shares of common stock for $16,200 cash.
1		Borrowed $6,600 cash by signing a 6-month, 6%, $6,600 note payable. Interest will be paid the first day of each subsequent month.
1		Purchased used truck for $8,600 cash.
2		Paid $1,500 cash to cover rent from March 1 through May 31.
3		Paid $2,700 cash on a 6-month insurance policy effective March 1.
6		Purchased cleaning supplies for $2,160 on account.
14		Billed customers $4,000 for cleaning services performed.
18		Paid $540 on amount owed on cleaning supplies.
20		Paid $1,890 cash for employee salaries.
21		Collected $1,730 cash from customers billed on March 14.
28		Billed customers $4,540 for cleaning services performed.
31		Paid $380 for gas and oil used in truck during month (use Maintenance and Repairs Expense).
31		Declared and paid a $970 cash dividend.

(a) Journalize the March transactions. (b) Post to the ledger accounts. (Use T-accounts.) (c) Prepare a trial balance at March 31.

Answer 1

Requirement 1:

Requirement 2:

Requirement 3: