Question: Smile Maids Inc s trial balance on February 28 2013 shows

Smile Maids, Inc.’s trial balance on February 28, 2013, shows the following:
Smile Maids, Inc. completed the following transactions in March:
Mar 2 Signed a contract worth $1,200/month for a year to provide cleaning service to an office building.
3 Paid one third of amount owing to the suppliers.
4 Paid 4 months’ rent in advance, $1,500 per month.
10 Sold 2,000 common shares for $6,800, and 2,500 preferred shares for $10,000.
14 Ordered cleaning supplies, $3,400.
20 Received $4,800 cash from a client for cleaning services starting in April for 3 months.
25 Received cleaning supplies ordered on the 14th; half of the supplies were used. The invoice will be paid on April 7th.
30 The cleaning revenue for March was $8,400, of which one quarter was on account.
31 Paid $3,600 for employee salaries.
31 Paid $1,800 dividends to shareholders.
1. Set up T-accounts with the beginning balances for each account.
2. Journalize the above transactions and post to the appropriate T-accounts.
3. Prepare the trial balance on March 31, 2013.
4. Prepare the income statement and the statement of changes in equity for the month of March.

Sale on SolutionInn
  • CreatedJuly 08, 2015
  • Files Included
Post your question