Question

Lars Linken opened Swifty Cleaners on March 1,2022. During March, the following transactions were completed.

Mar.
1 Owner invested $17,700 cash in the company.
1 Borrowed $7,200 cash by signing a 6 -month, 6%,$7,200 note payable. Interest will be paid the first day of each subsequent month.
1 Purchased used truck for $9,400 cash.
2 Paid $1,800 cash to cover rent from March 1 through May 31
3 Paid $2,700 cash on a 6-month insurance policy effective March 1.
6 Purchased cleaning supplies for $2,360 on account.
14 Billed customers $4,370 for cleaning services performed.
18 Paid $590 on amount owed on cleaning supplies.
20 Paid $2,070 cash for employee salaries.
21 Collected $1,890 cash from customers billed on March 14.
28 Bilied customers $4,960 for cleaning services performed,
31.Paid $410 for gas and oil used in truck during month (use Maintenance and Repairs Expense).
31 Owner withdrew $1,060 cash from the company.

Journalize the March transactions.

Answer 1

In March, Swifty Cleaners had various transactions including investments, borrowing, purchases, billings, payments, and withdrawals. The detailed journal entries for these transactions have been provided.

Step-by-step explanation:

The journal entries for the March transactions of Swifty Cleaners are as follows:

1. March 1: Cash 17,700, Owner's Capital 17,700 (Owner's investment in cash)
2. March 1: Cash 7,200, Notes Payable 7,200 (Borrowed cash on a note payable)
3. March 1: Trucks 9,400, Cash 9,400 (Purchased a truck for cash)
4. March 2: Prepaid Rent 1,800, Cash 1,800 (Paid rent for March, April, and May)
5. March 3: Prepaid Insurance 2,700, Cash 2,700 (Paid for a 6-month insurance policy)
6. March 6: Cleaning Supplies 2,360, Accounts Payable 2,360 (Purchased cleaning supplies on account)
7. March 14: Accounts Receivable 4,370, Service Revenue 4,370 (Billed customers for cleaning services)
8. March 18: Accounts Payable 590, Cash 590 (Paid amount owed on cleaning supplies)
9. March 20: Salaries Expense 2,070, Cash 2,070 (Paid employee salaries)
10. March 21: Cash 1,890, Accounts Receivable 1,890 (Collected cash from billed customers)
11. March 28: Accounts Receivable 4,960, Service Revenue 4,960 (Billed customers for cleaning services)
12. March 31: Maintenance and Repairs Expense 410, Cash 410 (Paid for gas and oil used in the truck)
13. March 31: Owner's Withdrawals 1,060, Cash 1,060 (Owner withdrew cash from the company)