Question 6
Laura Eddy opened Eddy’s Carpet Cleaners on March 1. During March, the following transactions were completed.
Mar. 1 Invested $10,090 cash in the business.
1 Purchased used truck for $6,210, paying $3,105 cash and the balance on account.
3 Purchased cleaning supplies for $1,168 on account.
5 Paid $1,476 cash on one-year insurance policy effective March 1.
14 Billed customers $4,881 for cleaning services.
18 Paid $1,349 cash on amount owed on truck and $562 on amount owed on cleaning supplies.
20 Paid $1,662 cash for employee salaries.
21 Collected $1,427 cash from customers billed on March 14.
28 Billed customers $2,402 for cleaning services.
31 Paid gas and oil for month on truck $218.
31 Withdrew $745 cash for personal use.
The chart of accounts for Eddy’s Carpet Cleaners contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 301 L. Eddy, Capital, No. 306, L. Eddy, Drawing, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense