Question:
Consider the following transactions for the first month of operations of a new small business called Crystal Clear Cleaning.
Required
1. Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Cleaning Supplies; Prepaid Rent; Prepaid Insurance; Equipment; Truck; Accounts Payable; Unearned Revenue; Note Payable; A. Hideaway, Capital; A. Hideaway, Withdrawals; 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.
4. Prepare an unadjusted trial balance as of November 30, 2022.
Transcribed Image Text:
Nov. 1
2
3
45
5
7
9
10
15
16
17
18
20
21
25
29
30
Aaron Hideaway invested $15,000 and a truck, with a market value of
$3,000, in the business.
The business paid $4,000 to Pleasant Properties for November through
February rent. (Hint: Debit Prepaid Rent.)
Paid $4,800 for a business insurance policy for the term November 1,
2022, through October 31, 2023. (Hint: Debit Prepaid Insurance.)
Purchased cleaning supplies on account, $320.
Purchased on account an industrial vacuum cleaner costing $1,500. The
invoice is payable November 25.
Paid $3,900 for a computer and printer.
Performed cleaning services on account in the amount of $4,700.
Received $200 for services rendered on November 9.
Paid employees, $400.
Received $15,000 for a 1-year contract beginning November 16 for
cleaning services to be provided. Contract begins November 16, 2022,
and ends November 15, 2023. (Hint: Credit Unearned Revenue.)
Provided cleaning services and received $400 cash.
Received a utility bill for $175 with a due date of December 4, 2022.
Borrowed $36,000 from the bank and signed a note payable with
interest rate of 6 percent per year.
Received $500 on account for services performed on November 9.
Paid $750 on account for vacuum cleaner purchased on November 5.
Paid $200 for advertising.
Aaron Hideaway withdrew cash of $1,400 from the business.