Answers to accounting problems
Laura Eddy opened Eddy's Carpet Cleaners on March 1. During March, the following transactions were completed.
Mar.
1
Invested $10,026 cash in the business.
1
Purchased used truck for $6,470, paying $3,235 cash and the balance on account.
3
Purchased cleaning supplies for $1,017 on account.
5
Paid $1,704 cash on one-year insurance policy effective March 1.
14
Billed customers $4,991 for cleaning services.
18
Paid $1,353 cash on amount owed on truck and $495 on amount owed on cleaning supplies.
20
Paid $1,920 cash for employee salaries.
21
Collected $1,404 cash from customers billed on March 14.
28
Billed customers $2,694 for cleaning services.
31
Paid gas and oil for month on truck $203.
31
Withdrew $621 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
