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Exercise Midterm

Lars Cleaners, opened by Lars Linken on March 1, 2020, completed several financial transactions throughout March. These included owner investments, borrowing, purchases of equipment and supplies, payments for rent and insurance, billing customers for services, and employee salaries. The month ended with cash withdrawals by the owner and various expenses recorded for maintenance and repairs.

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3 views1 page

Exercise Midterm

Lars Cleaners, opened by Lars Linken on March 1, 2020, completed several financial transactions throughout March. These included owner investments, borrowing, purchases of equipment and supplies, payments for rent and insurance, billing customers for services, and employee salaries. The month ended with cash withdrawals by the owner and various expenses recorded for maintenance and repairs.

Uploaded by

thanhbdsk
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Lars Linken opened Lars Cleaners on March 1, 2020.

During March, the following transactions


were completed.

Mar. 1 Owner invested €15,000 cash in the company.


1 Borrowed €6,000 cash by signing a 6-month, 6%, €6,000 note payable. Interest will be
paid the first day of each subsequent month.
1 Purchased used truck for €8,000 cash.
2 Paid €1,500 cash to cover rent from March 1 through May 31.
3 Paid €2,400 cash on a 6-month insurance policy effective March 1.
6 Purchased cleaning supplies for €2,000 on account.
14 Billed customers €3,700 for cleaning services performed.
18 Paid €500 on amount owed on cleaning supplies.
20 Paid €1,750 cash for employee salaries.
21 Collected €1,600 cash from customers billed on March 14.
28 Billed customers €4,200 for cleaning services performed.
31 Paid €350 for gas and oil used in truck during month (use Maintenance and Repairs
Expense).
31 Owner withdrew €900 cash from the company.

Requirement: Journalize the March transactions.

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