Basic Accounting2
Uploaded by
Ryoma EchizenBasic Accounting2
Uploaded by
Ryoma Echizen2-3A Journal Entries, T-Accounts, Trial Balance – Existing Company
ABC Carpet Cleaners had been operating for several years. On March 1, the company had the following
account balances: Cash $5,000; Accounts Receivable $300; Equipment (net) $3,000; Accounts Payable
$500; Bank Loan $2,000; Common Shares $100; and Retained Earnings $5,700.
The following transactions occurred during the month of March.
March 1 Purchased (and used) cleaning supplies for cash: $600.
March 2 Paid off the $500 that was owed from February.
March 4 Completed a major cleaning job. Billed $3,000 but did not collect.
March 9
Purchased a new Super Sucker brand vacuum for $6,000 on account. Payment is due in
30 days.
March 11 Collected amount owed to us from February.
March 15 Completed a cleaning job. Billed $1,000, collected half.
March 16 Paid employees’ salaries of $2,500.
March 19 Paid $500 to repair a broken vacuum.
March 22 Received and paid a heating bill: $100.
March 24 Received a telephone bill: $50, did not pay.
March 28 Collected money from the March 4 cleaning job.
March 29 Completed major cleaning job. Billed $7,000, payment is due on April 29.
March 31 Paid employees’ salaries of $2,500.
March 31 Paid interest of $75 on the bank loan.
Shareholders took a dividend totaling $700.
March 31
Required:
a.) Record all necessary journal entries based on the transactions above.
b.) Post the transactions to T-Accounts.
c.) Prepare a trial balance dated March 31.
