Question $3(60$ marks$)$

Laura Eddy opened Eddy's Carpet Cleaners on March $1,2024.$ In March the following transactions were completed:

$\backslash$table$[[$Mar $1,$Laura invested $$10,000$ cash in the business.$],[1,$Purchased a used truck for $$6,500,$ paying $$1,500$ cash and signing a note payable for the balance.$],[3,$Purchased supplies for $$1,200$ on account.$],[5,$Paid $$1,200$ on a one$-$year insurance policy, effective March $1.],[12,$Billed customers $$4,800$ for cleaning services.$],[18,$Paid $$500$ of amount owed on supplies.$],[20,$Paid $$1,800$ for employee salaries.$],[21,$Collected $$1,400$ from customers billed on March $12.],[25,$Billed customers $$2,500$ for cleaning services.$],[31,$Paid $$375$ for repairs on the truck.$],[31,$Withdrew $$900$ cash for personal use.$]]$

Instructions

A$.$ Journalize and post the March transactions.

B$.$ Prepare a trial balance at March $31.$

C$.$ Journalize and post the following adjustments:

i$.$ The truck has an estimated useful life of the five years.

ii$.$ One$-$twelfth of the insurance expired.

iii. An inventory count shows $$400$ of supplies on hand at March $31$

iv$.$ Accrued but unpaid employee salaries were $$500.$

v$.$ The note payable has a $4\mathrm{.}5\%$ annual interest rate.

vi$.$ Unbilled cleaning services at March $31$ were $$500.$

D$.$ Prepare an adjusted trial balance.

E$.$ Prepare the income statement and statement of owner's equity for March, and a classified balance sheet at March $31,2024.$ Of the note payable, $$2,000$ must be paid by February $28,2025.$

F$.$ Journalize and post the closing entries.

G$.$ Prepare a post$-$closing trial balance at March $31.$

Do companies need to make adjusting and closing entries at the end of every month?