Question: The following information is a partial list of transactions from

The following information is a partial list of transactions from Home Cleaning
Service, Inc.:
a. Tina, Don, and Daly each donated $5,000 in exchange for common stock to start the business on January 1, 2011.
b. On March 1, Home Cleaning paid $3,000 cash for a two-year insurance policy that was effective immediately.
c. On March 15, the company purchased $8,000 of supplies on account.
d. On April 5, the company purchased some cleaning equipment for $10,000 cash. The equipment should last for five years with no residual value. Home Cleaning will take a full year of depreciation in 2011.
e. On May 1, Home Cleaning purchased a year’s worth of advertising in a local newspaper for $1,200 cash.
f. On September 1, Home Cleaning obtained a nine-month loan for $15,000 at 5% from City National Bank, with interest and principal payable on June 1, 2012.
g. On December 31, Home Cleaning paid $5,000 of what it owed on account for supplies from item (c); the company had $2,000 of the supplies still on hand at the end of the year.
h. For the year ended December 31, 2011, Home Cleaning had revenues of $26,225. The cash had been received for all but $3,000.
i. Home Cleaning paid $2,000 in cash dividends on December 31, 2011.

1. Give the journal entries for the transactions; include any adjusting entries.
2. Post the transactions to T-accounts and prepare the adjusted trial balance at December 31, 2011.
3. Prepare the closing entries and post-closing trial balance for Home Cleaning Service, Inc., at December 31, 2011.

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  • CreatedSeptember 01, 2014
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