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Problem C Clean-Sweep Janitorial, Inc., A Company Providing Janitorial Services, Was

This document provides information about two companies - Problem C Clean-Sweep Janitorial, Inc. and Problem D Trim Lawn, Inc. It includes their chart of accounts, transactions for July for Clean-Sweep and transactions for December for Trim Lawn, and instructions to journalize the transactions, post them to accounts, and prepare trial balances.

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Loiz Santos Trinidad
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252 views3 pages

Problem C Clean-Sweep Janitorial, Inc., A Company Providing Janitorial Services, Was

This document provides information about two companies - Problem C Clean-Sweep Janitorial, Inc. and Problem D Trim Lawn, Inc. It includes their chart of accounts, transactions for July for Clean-Sweep and transactions for December for Trim Lawn, and instructions to journalize the transactions, post them to accounts, and prepare trial balances.

Uploaded by

Loiz Santos Trinidad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Problem C Clean-Sweep Janitorial, Inc.

, a company providing janitorial services, was


organized July 1. The following account numbers and titles constitute the chart of
accounts for the company:
Acct.

No. Account Title

100 Cash

103 Accounts receivable

150 Trucks

160 Office equipment

170 Equipment

200 Accounts payable

201 Notes payable

300 Capital stock

310 Retained earnings

320 Dividends

400 Service revenue

506 Gas and oil expense

507 Salaries expense

511 Utilities expense

512 Insurance expense

515 Rent expense

518 Supplies expense

July 1 The company issued $ 600,000 of capital stock for cash.


5 Office space was rented for July, and $ 5,000 was paid for the rental.
8 Desks and chairs were purchased for the office on account, $ 28,800.
10 Equipment was purchased for $ 50,000; a note was given, to be paid in 30 days.
15 Purchased trucks for $ 150,000, paying $ 120,000 cash and giving a 60-day note to
the dealer for $ 30,000.
July 18 Paid for supplies received and already used, $ 2,880.
23 Received $ 17,280 cash as service revenue.
27 Insurance expense for July was paid, $ 4,500.
30 Paid for gasoline and oil used by the truck in July, $ 576.
31 Billed customers for janitorial services rendered, $ 40,320.
31 Paid salaries for July, $ 51,840.
31 Paid utilities bills for July, $ 5,280.
31 Paid cash dividends, $ 9,600.
1. Journalize the transactions given for July in the general journal.
2. Post the journal entries to ledger accounts.
3. Prepare a trial balance as of July 31.
Problem D Trim Lawn, Inc., is a lawn care company. Thus, the company earns its
revenue from sending its trucks to customers’ residences and certain commercial
establishments to care for lawns and shrubbery. Trim Lawn’s trial balance at the end of
the first 11 months of the year follows:
TRIM LAWN, INC.

Trial Balance

November 30

Acct.

No. Account Title Debits

100 Cash $ 63,740

103 Accounts Receivable 88,600

150 Trucks 102,900

160 Office Furniture 8,400

200 Accounts Payable

300 Capital Stock

310 Retained Earnings, 2010 January 1


400 Service Revenue

505 Advertising Expense 18,300

506 Gas an d Oil Expense 21,900

507 Salaries Expense 65,850

511 Utilities Expense 2,310

515 Rent Expense 15,000

518 Supplies Expense 75,600

531 Entertainment Expense 2,550

$465,150

Dec. 2 Paid rent for December, $ 3,000.


5 Paid the accounts payable of $ 33,600.
8 Paid advertising for December, $ 1,500.
10 Purchased a new office desk on account, $ 1,050.
13 Purchased $ 240 of supplies on account for use in December.
15 Collected cash from customers on account, $ 75,000.
20 Paid for customer entertainment, $ 450.
24 Collected an additional $ 6,000 from customers on account.
26 Paid for gasoline used in the trucks in December, $ 270.
28 Billed customers for services rendered, $ 79,500.
30 Paid for more December supplies, $ 12,000.
31 Paid December salaries, $ 15,300.
31 Paid a $ 4,000 cash dividend. (The Dividends account is No. 320.)
1. Prepare entries in the general journal for the preceding transactions for
December.
2. Post the journal entries to three-column general ledger accounts.
3. Prepare a trial balance as of December 31.

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