P$4-5$A Devine Brown opened Devine's Carpet Cleaners on March $1.$ During March, the fol$-$

lowing transactions were completed.

Mar. $1$ Invested $$10,000$ cash in the business.

$1$ Purchased used truck for $$6,000,$ paying $$3,000$ cash and the balance on account.

$3$ Purchased cleaning supplies for $$1,200$ on account.

$5$ Paid $$1,200$ cash on one$-$year insurance policy effective March $1.$

$14$ Billed customers $$4,800$ for cleaning services.

$18$ Paid $$1,500$ cash on amount owed on truck and $$500$ on amount owed on cleaning

supplies.

$20$ Paid $$1,800$ cash for employee salaries.

$21$ Collected $$1,400$ cash from customers billed on March $14.$

$28$ Billed customers $$2,500$ for cleaning services.

$31$ Paid gasoline for month on truck $$200.$

$31$ Withdrew $$700$ cash for personal use.

The chart of accounts for Devine's Carpet Cleaners contains the following accounts: No$.101$ Cash,

No$.112$ Accounts Receivable, No$.128$ Supplies, No$.130$ Prepaid Insurance, No$.157$ Equipment,

No$.158$ Accumulated Depreciation$-$Equipment, No$.201$ Accounts Payable, No$.212$ Salaries

and Wages Payable, No$.301$ Owner's Capital, No$.306$ Owner's Drawings, No$.350$ Income Sum$-$

mary, No$.400$ Service Revenue, No$.633$ Gasoline Expense, No$.634$ Supplies Expense, No$.711$

Depreciation Expense, No$.722$ Insurance Expense, and No$.726$ Salaries and Wages Expense.

Instructions

$($a$)$ Journalize and post the March transactions. Use page J$1$ for the journal and the three$-$column

form of account.

$($b$)$ Prepare a trial balance at March $31$ on a worksheet.

$($c$)$ Enter the following adjustments on the worksheet and complete the worksheet.

$(1)$ Earned but unbilled revenue at March $31$ was $$500.$

$(2)$ Depreciation on equipment for the month was $$300.$

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

$(4)$ An inventory count shows $$250$ of cleaning supplies on hand at March $31.$

$(5)$ Accrued but unpaid employee salaries were $$550.$

$($d$)$ Prepare the income statement and owner's equity statement for March and a classified bal$-$

ance sheet at March $31.$

$($e$)$ Journalize and post adjusting entries. Use page J$2$ for the journal.

$($f$)$ Journalize and post closing entries and complete the closing process. Use page J$3$ for the

journal.

$($g$)$ Prepare a post$-$closing trial balance at March $31.$

Complete all steps in

accounting cycle.

$(SO1,2,3,4,6)$

$($b$)$ Trial balance $$19,500$

$($c$)$ Adjusted trial balance

$$20,850$

$($d$)$ Net income $$3,900$

Total assets $$15,950$

$($g$)$ Post$-$closing trial balance

$$16,250$

Analyze errors and prepare

Analyze errors and prepare