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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. a. Using the accounting equation, record each of the transactions in columnar format. Use negative signs with your answers below, when appropriate. b. Use journal entries to record the transactions for April in the general journal. April 1 Randy Smith invested $14,000 cash to begin the business; he received common stock for his investment.2 Paid six months' lease on a van, $2,850.3 Borrowed $10,000 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 equipment; paid $2,000 down with the remainder due within 30 days.4 Purchased cleaning supplies for $4,300 cash.7 Paid $350 for newspaper advertisements to run during April.21 Billed customers for services, $3,500.23 Paid $1,500 on account to cleaning equipment firm (see April 3 transaction).28 Collected $2,300 from customers on 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.
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Final Clean, a firm providing house-cleaning services, began business on April 1. The following acco...
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