80.2K

Verified Solution

Link Copied!

Sonya Smart started her own business, Clear Sky Cleaning. She offers interior and exterior window cleaning for local area residents. Sonya rents a garage to store her tools and cleaning supplies and has a part$-$time assistant to answer the phone and handle extra work when necessary.

$($a$)$ Sonya made a deposit in a bank account for the business, $$28,000.$

$($b$)$ Paid rent, $$1,150.$

$($c$)$ Purchased a used van for cash, $$15,000.$

$($d$)$ Purchased tools on account from Clean Tools, $$2,600.$

$($e$)$ Purchased cleaning supplies that cost $$2,300.$ Paid $$200$ cash and will pay the balance next month.

$($f$)$ Paid part$-$time assistant $($wages$)$ for first half of month, $$700.$

$($g$)$ Paid for advertising, $$275.$

$($h$)$ Paid two$-$year premium for liability insurance on van, $$4,480.$

$($i$)$ Received cash for services performed, $$2,800.$

$($j$)$ Performed cleaning services for clients on account, $$3,500.$

$($k$)$ Paid phone bill, $$240.$

$($l$)$ Received cash from clients for window cleaning performed on account in transaction $($j$),$ $$2,000.$

$($m$)$ Paid part$-$time assistant $($wages$)$ for second half of month, $$700.$

$($n$)$ Made partial payment on tools purchased in transaction $($d$),$ $$1,200.$

$($o$)$ Earned additional revenues amounting to $$4,800$: received $$2,500$ in cash.

$($p$)$ Sonya withdrew cash at the end of the month for personal expenses, $$3,100.$

$1.$ Foot T$-$Accounts to confirm the debit and credit balances.

$2.$ Create a Trial Balance report to show ending balances.

$3.$ Create a Profit and Loss Statement, and Balance Sheet as of September $30,2023.$

Answer & Explanation Solved by verified expert

See Answer