Comprehensive Accounting Cycle Review 11-2 (Part LevelSubmission)
Karen Noonan opened Metlock Inc. on February 1, 2017. DuringFebruary, the following transactions were completed:
| Feb. 1 | | Issued 4,000 shares of Metlock common stock for $15,600. Eachshare has a $1.50 par. |
| 1 | | Borrowed $6,600 on a 2-year, 6% note payable. |
| 1 | | Paid $10,820 to purchase used floor and window cleaningequipment from a company going out of business ($3,960 was for thefloor equipment and $6,860 for the window equipment). |
| 1 | | Paid $260 for February Internet and phone services. |
| 3 | | Purchased cleaning supplies for $1,180 on account. |
| 4 | | Hired 4 employees. Each will be paid $580 per 5-day work week(Monday– Friday). Employees will begin working Monday, February9. |
| 5 | | Obtained insurance coverage for $11,040 per year. Coverage runsfrom February 1, 2017, through January 31, 2018. Karen paid $2,760cash for the first quarter of coverage. |
| 5 | | Discussions with the insurance agent indicated that providingoutside window cleaning services would cost too much to insure.Karen sold the window cleaning equipment for $4,740 cash. |
| 16 | | Billed customers $4,680 for cleaning services performed throughFebruary 13, 2017. |
| 17 | | Received $468 from a customer for 4 weeks of cleaning servicesto begin February 21, 2017. |
| 18 | | Paid $360 on amount owed on cleaning supplies. |
| 20 | | Paid $3 per share to buy 300 shares of Metlock common stockfrom a shareholder who disagreed with management goals. The shareswill be held as treasury shares. |
| 23 | | Billed customers $5,160 for cleaning services performed throughFebruary 20. |
| 24 | | Paid cash for employees’ wages for 2 weeks (February 9–13 and16–20). |
| 25 | | Collected $3,000 cash from customers billed on February16. |
| 27 | | Paid $260 for Internet and phone services for March. |
| 28 | | Declared and paid a cash dividend of $0.30 per share. |
a.) Journalize the February transactions.
b.) Post to Ledger Accounts
c.) Prepare Trial Balance
