Question

Consider the following transactional data for the first month of operations for Shine King Cleaning.
Nov. 1 Stockholders contributed $ 35,000 and a truck, with a market value of $ 8,000, to the business in exchange for common stock.
2 The business paid $ 2,000 to Pleasant Properties for November through February rent. (Debit Prepaid Rent)
3 Paid $ 2,400 for a business insurance policy for the term November 1, 2015 through October 31, 2016. (Debit Prepaid Insurance)
4 Purchased cleaning supplies on account, $ 270.
5 Purchased on account an industrial vacuum cleaner costing $ 1,000. The invoice is payable November 25.
7 Paid $ 1,200 for a computer and printer.
9 Performed cleaning services on account in the amount of $ 3,000.
10 Received $ 100 for services rendered on November 9.
15 Paid employees, $ 500. 16 Received $ 3,600 for a 1-year contract beginning November
16 for cleaning services to be provided. Contract begins November 16, 2015, and ends November 15, 2016. (Credit Unearned Revenue)
17 Provided cleaning services and received $ 800 cash.
18 Received a utility bill for $ 175 with a due date of December 4, 2015. (Use Accounts Payable)
20 Borrowed $ 40,000 from bank with interest rate of 9% per year.
21 Received $ 900 on account for services performed on November 9.
25 Paid $ 500 on account for vacuum cleaner purchased on November 5.
29 Paid $ 100 for advertising.
30 Cash dividends of $ 600 were paid to stockholders.

Requirements
1. Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Cleaning Supplies; Prepaid Rent; Prepaid Insurance; Equipment; Truck; Accounts Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Advertising Expense; and Utilities Expense. Explanations are not required.
2. Open a T-account for each account.
3. Post the journal entries to the T-accounts and calculate account balances. Formal posting references are not required.
4. Prepare a trial balance as of November 30, 2015.



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  • CreatedJanuary 16, 2015
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