Smile Maids, Inc.'s trial balance on February 28, 2015, shows the following:

Smile Maids, Inc. completed the following transactions in March:
Mar 2 Signed a contract worth $1,200/month for a year to provide cleaning service to an office building.
3 Paid one third of amount owing to the suppliers.
4 Paid four months rent in advance, $1,500 per month.
10 Sold 2,000 common shares for $6,800, and 2,500 preferred shares for $10,000.
14 Ordered cleaning supplies, $3,400.
20 Received $4,800 cash from a client for cleaning services starting in April for
3 months.
25 Received cleaning supplies ordered on the fourteenth; half of the supplies were used. The invoice will be paid on April 7.
30 The cleaning revenue for March was $8,400, of which one quarter was on account.
31 Paid $3,600 for employee salaries.
31 Paid $1,800 dividends to shareholders.
Requirements
1. Set up T-accounts with the beginning balances for each account.
2. Journalize the above transactions and post to the appropriate T-accounts.
3. Prepare the trial balance on March 31, 2015.
4. Prepare the income statement and the statement of changes in equity for the month of March.

Transcribed Image Text:

Smile Maids, Inc. Trial Balance February 28, 2015 ACCOUNT TITLE Cash ACCT # DEBIT CREDIT $ 7,200 3,800 500 1010 1020 Accounts Receivable 1030 Cleaning Supplies Prepaid Rent Truck 1040 1400 52,000 $ 6,600 2010 Accounts Payable Unearned Cleaning Revenue Long-term Note Payable 2020 4,400 34,000 2100 3010 Preferred Shares 3015 3030 3040 Common Shares (4,000 shares) Retained Earnings 12,000 6,500 Dividends Cleaning Revenue Cleaning Supplies Expense Salaries Expense Rent Expense 4010 5010 5020 5030 $63,500 $63,500 Total