| ACC101 Comprehensive Problem |
| Greene's Cleaning Service |
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| Fred
Greene opened Greene's Cleaning Service on October 1, 2014. During October,
the company completed the following transactions: |
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| Oct |
1 |
Invested $20,000 cash in
the business in exchange for common stock. |
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1 |
Purchased a used truck
for $12,000, paying $3,000 cash and the balance on account. |
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3 |
Purchased cleaning
supplies for $1,500 on account. |
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5 |
Paid $1,800 on a one-year
insurance policy, effective October 1. |
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12 |
Billed customers $5,600
for cleaning services. |
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18 |
Paid $2,000 of amount
owed on truck, and $500 of amount owed on cleaning supplies. |
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20 |
Paid $1,950 for employee
salaries. |
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21 |
Collected $2,400 from
customers billed on October 12. |
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25 |
Billed customers $2,500
for cleaning services. |
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31 |
Paid gasoline for the
month on the truck, $350. |
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31 |
Paid dividends of $500. |
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| Adjustments: |
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| Oct |
31 |
Earned but unbilled fees
at October 31 were $1,500. |
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Depreciation on equipment
for the month was $300. |
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One-twelfth of the
insurance expired. |
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An inventory count shows
$500 of cleaning supplies on hand at October 31. |
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| REQUIRED |
| (a) |
Journalize and post the October transactions. Use page J1 for the journal |
| (b) |
Prepare a trial balance at October 31 |
| (c) |
Journalize and post the adjusting entries. Use page J2 for the journal |
| (d) |
Prepare an adjusted trial balance at October 31 |
| (e) |
Prepare the Income Statement and Retained Earnings Statement for October,
and a classified Balance |
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Sheet at October 31, 2014 |
| (f) |
Journalize and post the closing entries. Use page J3 for the journal. |
| (g) |
Prepare a post-closing trial balance at October 31 |
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Accrued but unpaid
employee salaries were $500. |
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Solution: ACC101 Comprehensive Problem