Refer to the information in M3-14. Prepare a journal entry for each transaction. Create a T-account for each account, and then post the journal entries to the T-accounts (use dates to reference each entry).

Q3-14

Verrecchia Company, a cleaning services firm, began business on April 1. The company created the following accounts to record the transactions for April: Cash; Accounts Receivable; Supplies; Prepaid Van Lease; Equipment; Notes Payable; Accounts Payable; Common Stock; Dividends; Cleaning Fees Earned; Wages Expense; Advertising Expense; and Van Fuel Expense. Record the following transactions for April using the financial statement effects template.

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April 1 2 R. Verrecchia invested $9,000 cash to begin the business in exchange for common stock. Paid $2,850 cash for six months' lease on van for the business. 3 Borrowed $10,000 cash from bank and signed note payable agreeing to repay it in one year plus 10% interest. 4 Purchased $5,500 of cleaning equipment; the company paid $2,500 cash with the remainder due within 30 days. 5 Paid $4,300 cash for cleaning supplies. 7 Paid $350 cash for advertisements to run in the area newspaper during April. 21 Billed customers $3,500 for services performed. 23 Paid $3,000 cash toward the account for cleaning equipment (see April 4). Collected $2,300 cash from customers on their accounts billed on April 21. Paid $1,000 cash for dividends. 30 Paid $2,750 cash for April wages. 30 Paid $995 cash for gasoline used during April. 28 29