Hayley Williams operated FarMore Cleaning Service that was established on December 1, 2020. During December, the company completed the following transactions.

1 Hayley invested 600,000 cash in the business

2 Purchased a used Van for 200, 000 paying 60,000 cash, and issued a promissory note for the balance.

3 Purchased cleaning supplies for 4,000 on a cash basis.

5 Paid 41,200 on a 4-year insurance policy, effective December 1.

8 Bought a laptop from JnF Computer Shop amounting to 90,000. Half of the price was paid.

12 Sent a billed customers 68,000 for cleaning services completed last December 10.

15 Advance collection of the payment was made from Catbalogan Plaza hotel, 80,000.

18 Paid the salary of the employees 18,000.

20 Paid 16,000 for rent of the shop

21 Received 39,000 from the client billed last December 12.

23 Received a promissory note from a client for the cleaning services rendered, 35,000.

25 Billed customers 25,000 for cleaning services rendered.

30 Paid gasoline for the month on the truck, 800.

31 Withdrew 16,000 cash for personal use.

• Additional details for the adjustments of Hayley William's Trail Balance.

a. The van that was acquired has a remaining life of 4 years and with a residual value of 40,000.

b. Per count, the unused supplies amounted to 1,800.

c. Allowance for doubtful accounts is estimated at 10 percent of the ending balance.

d. The insurance has already expired. Compute the expired amount.

e. The notes payable has an implied 5% annual interest rate.

f. The equipment has a useful life of 5 years and 5,000 residual value.

g. As of December 31, service has been rendered to Catbalogan Plaza amounting to 20,000.

h. An employee claimed that he should be paid with his December salary amounting to 8,000. 

Answer rating: 100% (QA)

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