Question: Complete all steps in accounting cycle. (LO1, 2) AP Laura Eddy opened Eddy's Carpet Cleaners on ...
Complete all steps in accounting cycle.
(LO 1, 2) AP
Laura Eddy opened Eddy's Carpet Cleaners on March 1, 2017. InMarch, the following transactions were completed:
Mar.?1 | Laura invested $10,000 cash in the business. |
1 | Purchased a used truck for $6,500, paying $1,500 cash andsigning 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 March1. |
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 fuel for the month on the truck. |
31 | Withdrew $900 cash for personal use. |
Instructions
(e)
Prepare the income statement and statement of owner's equity forMarch, and a classified balance sheet at March 31, 2017. Of thenote payable, $2,000 must be paid by March 1, 2018.
(f)
Journalize and post the closing entries.
(g)
Prepare a post-closing trial balance at March 31.
