Dakota Skye opened Clean 4 U, Inc. on March 1, 2023. During March, the following transactions were completed:
Dakota Skye opened Clean 4 U, Inc. on March 1, 2023. During March, the following transactions were completed:
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Mar. 1
|
Issued 5,000 shares of Clean 4 U, Inc. Common Stock for $15,000. Each share has a $1.50 par. |
|
1 |
Paid $250 to BeamSpeed for internet and phone service for March. |
|
1 |
Borrowed $8,000 on a 2-year, 7.4% note payable. |
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2 |
Paid $9,500 to purchase used floor and window cleaning equipment from a company going out of business ($4,850 was for the floor equipment and $4,650 for the window equipment). |
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3 |
Discussions with an insurance agent indicated that providing outside window cleaning services would cost too much to insure. Dakota sold the window cleaning equipment for $4,485 cash. |
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3 |
Negotiated insurance coverage at a yearly rate of $12,840. Clean 4 U paid $3,210 cash for three months of coverage. |
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3 |
Hired 5 employees. Each will be paid $650 per 5-day work week (Monday-Friday). Employees will begin working on Monday, March 6th . |
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4 |
Purchased cleaning supplies for $1,050 on account. |
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4 |
Paid $3.50 per share to buy 250 shares of Clean 4 U, Inc Common Stock from a shareholder who disagreed with management goals. The shares will be held as |
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7 |
Received $750 from a customer for 4 weeks of cleaning services to begin on March 13, 2023. |
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7 |
Paid $500 on amount owed on cleaning supplies. |
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13 |
Paid for employees’ wages for the week of March 6-10. |
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13 |
Billed customers $6,400 for cleaning services performed for March 6-10. |
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15 |
Purchased additional cleaning supplies for $700. |
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20 |
Paid employees’ wages for the week of March 13-17. |
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20 |
Billed customers $5,900 for cleaning services performed the week of March 13–17. |
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21 |
Collected $4,200 cash from customers billed on March 13. |
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23 |
Paid $250 to BeamSpeed for services for April. |
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27 |
Paid employees’ wages for the week of March 20-24 |
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27 |
Billed customers $6,100 for cleaning services performed the week of March 20-24. |
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28 |
Declared and paid a cash dividend of $0.12 per share. |
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29 |
Collected $7,250 from customers billed on March 13 & 27. |
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29 |
Paid $550 on amount owed for supplies. |
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30 |
Received notice that a customer who was billed $200 for services performed March 10th has filed for bankruptcy. Clean 4 U, Inc does not expect to collect any portion of this outstanding receivable. (Clean 4 U will follow the GAAP Guidelines for uncollectible accounts.) |
Adjustment Data:
A. Services performed for customers through March 31, 2023, but unbilled and uncollected were $5,950.
B. Clean 4 U used the allowance method to estimate
C. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 5 years, and $500 salvage value.
D. Record 1 month of insurance expense.
E. An inventory count shows $650 of supplies on hand on March 31st.
F. Record services performed for the customer who paid in advance on March 7th.
G. Accrue for wages owed through March 31st.
H. Accrue interest expense for one month.
Instructions:
Journalize the March transactions.
Post to ledger accounts.
Prepare a
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