Question

Transaction Entries Final Clean, a firm providing house-cleaning services, began business on April 1. The following accounts in its general ledger are needed to record the transactions for April: Cash: Accounts Receivable; Supplies; Prepaid Van Lease; Equipment Accounts Payable; Notes Payable Common Stock Retained Earnings, Dividends; Cleaning Fees Earned; Wage Expense; Advertising Expense; and Fuel Expense. 1 Randy Smith invested $14.000 cash to begin the business he received common stock for his imvestment. April 2 Paid six months' lease on a van, $2850 3 Borrowed S10,000 from a bank and signed a note payable agreeing to repay the $10.000 in one year plus 10 percent interest 3 Purchased $5.500 of cleaning equioment; paid $2,000 down with the remainder due within 30 days 4 Purchased cleaning supplies for $4300 cash 7 Paid S350 for newspaper advertisements to run during April. 21 Biled customers for services, 3500 23 Paid $1,500 on account to cleaning equipment firm (see April 3 trarsaction) 28 Collected $2,300 from customers en account 29 Randy Smith received a $1.000 cash dividend 30 Paid wages for April $1.750. 30 Paid service station for gasoline used during April, $350.

Answer 1

	Cash	Accounts Receivable	Supplies	Prepaid Van Lease	Equipment	=	Accounts Payable	Notes Payable	+	Common Stock	Retained Earnings
April 1	14000									14000
2	-2850			2850
3	10000							10000
3	-2000				5500		3500
4	-4300		4300
7	-350										-350
21		3500									3500
23	-1500						-1500
28	2300	-2300
29	-1000										-1000
30	-1750										-1750
30	-350										-350
	12200	1200	4300	2850	5500	=	2000	10000	+	14000	50

Date	Description	Debit	Credit
April 1	Cash	14000
	Common stock		14000
	Owner purchased common stock for cash.
2	Prepaid van lease	2850
	Cash		2850
	Paid six months' lease on van.
3	Cash	10000
	Notes payable		10000
	Borrowed money from bank for one year, interest rate of 10%.
3	Equipment	5500
	Cash		2000
	Accounts payable		3500
	Purchased equipment, made down payment with balance due in 30 days.
4	Supplies	4300
	Cash		4300
	Purchased supplies for cash.
7	Advertising expense	350
	Cash		350
	Paid for April advertising.
21	Accounts receivable	3500
	Cleaning fees earned		3500
	Billed customers for services.
23	Accounts payable	1500
	Cash		1500
	Payment on account.
28	Cash	2300
	Accounts receivable		2300
	Collections from customer on account.
29	Dividends	1000
	Cash		1000
	Shareholders are paid a cash dividend.
30	Wage expense	1750
	Cash		1750
	Paid wages for April.
30	Fuel expense	350
	Cash		350