XACC 280 Week 6 Appendix Q

Appendix Q Comprehensive Problem Dustbusters Cleaning Company Use this template to complete the assignment per the instructions below Dustbusters Cleaning Company Chart of Accounts: No. 101Cash No. 112 Accounts Receivable No. 126Cleaning Supplies No. 130Prepaid Insurance No. 149Equipment No. 150 Accumulated Depreciation - Equipment No. 201Accounts Payable No. 212Salaries Payable No. 311Common Stock No. 325Retained Earnings No. 340Dividends No. 350Income Summary No. 400Service Revenue No. 701Cleaning Supplies Expense No. 717Depreciation Expense No. 720Gas & Oil Expense No. 722Insurance Expense No. 729Salaries Expense Louise Dreyton opened Dustbusters Cleaning Company on February 1, 2010 During the first month of operation the following transactions occurred: Feb 1Dreyton invested $20,000 cash in exchange for common stock 1Purchased used truck for $9000, paying $4,000 cash and the balance on account 2 Purchased cleaning supplies for $2,100 on account 7Paid $1,800 cash for a one-year insurance policy effective February 1 11Billed customers $5,100 for cleaning services 16Paid $1,500 cash owed on truck and $1,400 on amount owed for cleaning supplies 19Paid $2,800 cash for employee salaries 21Collected $3,400 cash from customers billed on February 11 25Billed customers $9,000 for cleaning services 28Paid gas and oil for the month on truck $350 28Declared and paid a $1,600 cash dividend Instructions (a) Journalize the February transactions on the tab labeled General Journal (b) Post the February transactions on the tab labeled Ledger Accounts (c) Complete the 10-column worksheet for Dustbusters Cleaning Company on the tab labeled Dustbusters Cleaning Worksheet ^ Prepare a trial balance at February 28 on the worksheet ^ Enter the following adjusting entries on the worksheet (1) Services provided but unbilled and uncollected at February 28 are $2,700 (2) Depreciation on equipment for the month is $500 (3) One month of the insurance expired (4) An inventory count shows $700 of cleaning supplies on hand at February 28 (5) Accrued but unpaid employee salaries are $1,000 ^ Complete the adjusted trial balance section on the worksheet ^ Complete the Income Statement section on the worksheet ^ Complete the Balance Sheet & Statement of Owner's Equity section on the worksheet ^ Compute the Net Income and enter it in the appropriate columns on the worksheet (d) Prepare the income statement and retained earnings statement for February and a classified balance sheet at February 28 on the tab labeled Financial Statements (e) Journalize the adjusting entries on the tab labeled Adjusting Entries (f) Post the adjusting entries on the tab labeled Ledger Accounts (g) Journalize the closing entries on the tab labeled Closing Entries (h) Post the closing entries on the tab labeled Ledger Accounts (i) Prepare a post-closing trial balance at February 28 on the tab labeled Post-Closing Trial Balance