Chris Sams opened KwickKlean, Inc. on January $1,2024.$ During January, the following transactions were completed.

Jan. $1$  Issued $20,000$ shares of common stock for $$20,000$ cash.

$1$  Purchased used truck for $$42,000,$ paying $$10,000$ cash and the balance on a three$-$month note payable with an annual interest rate of $6\%.$ 

$1$ Paid $$4,000$ rent in cash for January rent.

$3$  Purchased cleaning supplies for $$2,600$ on account.

$5$  Paid $$6,240$ cash on a $1-$year insurance policy effective January $1.$ 

$12$  Billed customers $$9,400$ for cleaning services.

$18$  Paid $$630$ cash on amount owed on cleaning supplies.

$20$  Paid $$2,600$ cash for employee salaries.

$21$  Collected $$6,300$ cash from customers billed on January $12.$ 

$25$  Billed customers $$2,300$ for cleaning services.

$31$  Paid $$800$ cash for maintenance of the truck during month.

$31$  Declared and paid $$1,000$ cash dividend.

The chart of accounts for KwickKlean, Inc. contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation$—$Equipment$,$ Accounts Payable, Notes Payable, Salaries and Wages Payable, Interest Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Interest Expense, Rent Expense, Insurance Expense, Salaries and Wages Expense.

Instructions

$($a$)$  Journalize the January transactions.

$($b$)$  Post to the ledger accounts. $($Use T$-$accounts. Soft code $–$ or link the amounts.$)$

$($c$)$  Prepare a trial balance at January $31.$

$($d$)$  Journalize the following adjustments.

 $(1)$  Services performed but unbilled and uncollected at January $31$ were $$2,500.$ 

$(2)$  Depreciation on equipment for the month was $$875.$ 

$(3)$  One$-$twelfth of the insurance expired.

$(4)$  An inventory count shows $$300$ of cleaning supplies on hand at January $31.$ 

$(5)$  Accrued but unpaid employee salaries were $$1,300.$

$(6)$  Accrued interest on Note Payable.

$($e$)$  Post adjusting entries to the T$-$accounts.

$($f$)$  Prepare an adjusted trial balance.

$($g$)$  Prepare the income statement and a retained earnings statement for January and a classified balance sheet at January $31.$

$($h$)$  Journalize and post closing entries and complete the closing process.

$($i$)$  Prepare a post$-$closing trial balance at January $31.$

Check Figures

Tot. assets $$56,075$

Cash $$1,030$

Answer rating: 100% (QA)

a Journalizing the January transactions Jan 1 Cash 20000 Common Stock 20000 Jan 1 Equipment 42000 Notes Payable 32000 Cash 10000 Jan 1 Rent Expense 4000 Cash 4000 Jan 3 Supplies 2600 Accounts Payable ... View the full answer