The following transactions resulted from Continental Laundry Services during the month of November 2020: 2020 Nov. 1
Question:
The following transactions resulted from Continental Laundry Services during the month of November 2020:
2020 Nov.
1 Mark started Continental Laundry Company, invested $50,000 cash and $6,000 worth of laundry supplies in the business.
3 Bought delivery trucks on account, $35,000
6 Received advertisement bill for $900 but not yet paid
8 Bought office equipment for cash $1,500
12 Received cash for Laundry services rendered, $13,000
16 Paid salaries expense $1,850
18 Paid gas expense for company trucks, $650
20 Billed customers for laundry services rendered, $6,500
27 Paid telephone bill, $500
28 Received $1,600 as partial payment of transaction ‘Nov 20’
28 Mark paid his own telephone bill with a company cheque, $90
Adjustment data:
a. Laundry Supplies on hand $4,200
b. Depreciation on delivery truck, $100: {(35,000-5,000)/25}/12
c. Accrued Salaries $500
(i) Record all the transactions in the Journal and set up Standard account or ‘T’ accounts in a ledger and record the transaction in as well as show the final balance.
(ii) Prepare a worksheet showing trial balance, adjustment and post adjusted trial balance
(iii) Prepare Financial statements for the month of November 2020
Expert Answer:
1 When cash and supplies are invested cash and supplies increase so they are debited Common Stock al... View the full answer
