Lars Linken opened Riverbed Cleaners on March 1, 2017. During March, the following transactions were completed. Mar....

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Lars Linken opened Riverbed Cleaners on March 1, 2017. DuringMarch, the following transactions were completed.
Mar. 1 Issued 10,200 shares of common stock for $15,300 cash.
1 Borrowed $6,000 cash by signing a 6-month, 6%, $6,000 notepayable. Interest will be paid the first day of each subsequentmonth.
1 Purchased used truck for $8,200 cash.
2 Paid $1,500 cash to cover rent from March 1 through May31.
3 Paid $2,400 cash on a 6-month insurance policy effective March1.
6 Purchased cleaning supplies for $2,040 on account.
14 Billed customers $3,770 for cleaning services performed.
18 Paid $510 on amount owed on cleaning supplies.
20 Paid $1,790 cash for employee salaries.
21 Collected $1,630 cash from customers billed on March 14.
28 Billed customers $4,280 for cleaning services performed.
31 Paid $360 for gas and oil used in truck during month (useMaintenance and Repairs Expense).
31 Declared and paid a $920 cash dividend.

The chart of accounts for Riverbed Cleaners contains the followingaccounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance,Prepaid Rent, Equipment, Accumulated Depreciation—Equipment,Accounts Payable, Salaries and Wages Payable, Notes Payable,Interest Payable, Common Stock, Retained Earnings, Dividends,Income Summary, Service Revenue, Maintenance and Repairs Expense,Supplies Expense, Depreciation Expense, Insurance Expense, Salariesand Wages Expense, Rent Expense, and Interest Expense.
Prepare a trial balance at March 31.

Mar. 1		Issued 10,200 shares of common stock for $15,300 cash.
1		Borrowed $6,000 cash by signing a 6-month, 6%, $6,000 notepayable. Interest will be paid the first day of each subsequentmonth.
1		Purchased used truck for $8,200 cash.
2		Paid $1,500 cash to cover rent from March 1 through May31.
3		Paid $2,400 cash on a 6-month insurance policy effective March1.
6		Purchased cleaning supplies for $2,040 on account.
14		Billed customers $3,770 for cleaning services performed.
18		Paid $510 on amount owed on cleaning supplies.
20		Paid $1,790 cash for employee salaries.
21		Collected $1,630 cash from customers billed on March 14.
28		Billed customers $4,280 for cleaning services performed.
31		Paid $360 for gas and oil used in truck during month (useMaintenance and Repairs Expense).
31		Declared and paid a $920 cash dividend.

Answer & Explanation Solved by verified expert

4.1 Ratings (835 Votes)

Trial Balance at March 31
Account Titles	Debit	Credit
Cash	$7,250
Accounts Receivable	$6,420
Supplies	$2,040
Prepaid Insurance	$2,000
Prepaid Rent	$1,000
Equipment	$8,200
Accounts Payable		$1,530
Notes payable		$6,000
Interest payable		$30
Common Stock		$15,300
Dividends	$920
Service Revenue		$8,050
Maintenance and repair expense	$360
Insurance expense	$400
Salaries and wages expense	$1,790
Rent Expense	$500
Interest expense	$30
Total	$30,910	$30,910

Interest on Notes payable=60006%1/12=30

Adjustment entry for Interest is included in above trial balance, rest relating to
depreciation, supplies are to be made
Rent for March is charged to rent expense and for april and may recorded in
prepaid rent
Insurance for march charges to expense account and balance $2000 recorded i
in prepaid insurance

Rent per month = 1500/3 = $500
Prepaid rent = 1500-500 = 1000

Insurance per month = 2400/6=$400
Prepaid insurance = 2400-400=2000

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Transcribed Image Text

Lars Linken opened Riverbed Cleaners on March 1, 2017. DuringMarch, the following transactions were completed.Mar. 1Issued 10,200 shares of common stock for $15,300 cash.1Borrowed $6,000 cash by signing a 6-month, 6%, $6,000 notepayable. Interest will be paid the first day of each subsequentmonth.1Purchased used truck for $8,200 cash.2Paid $1,500 cash to cover rent from March 1 through May31.3Paid $2,400 cash on a 6-month insurance policy effective March1.6Purchased cleaning supplies for $2,040 on account.14Billed customers $3,770 for cleaning services performed.18Paid $510 on amount owed on cleaning supplies.20Paid $1,790 cash for employee salaries.21Collected $1,630 cash from customers billed on March 14.28Billed customers $4,280 for cleaning services performed.31Paid $360 for gas and oil used in truck during month (useMaintenance and Repairs Expense).31Declared and paid a $920 cash dividend.The chart of accounts for Riverbed Cleaners contains the followingaccounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance,Prepaid Rent, Equipment, Accumulated Depreciation—Equipment,Accounts Payable, Salaries and Wages Payable, Notes Payable,Interest Payable, Common Stock, Retained Earnings, Dividends,Income Summary, Service Revenue, Maintenance and Repairs Expense,Supplies Expense, Depreciation Expense, Insurance Expense, Salariesand Wages Expense, Rent Expense, and Interest Expense.Prepare a trial balance at March 31.