Karen Noonan opened Sage Hill Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 Issued 4,100 shares of Sage Hill Cleaning Services common stock for $10,660. Each share has a $1.50 par. 1 Borrowed $6,560 on a 2-year, 6% note payable. 1 Paid $7,400 to purchase used floor and window cleaning equipment from a company going out of business ($3,950 was for the floor equipment and $3,450 for the window equipment). Paid $180 for February Internet and phone services. 3 Purchased cleaning supplies for $800 on account. 4 Hired 4 employees. Each will be paid $390 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9. 5 Obtained insurance coverage for $8,070 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $2,018 cash for the first quarter of coverage. 5 Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window dleaning equipment for $3,240 cash. 16 Billed customers $3,200 for cleaning services performed through February 13, 2022. Received $432 from a customer for 4 weeks of deaning services to begin February 21, 2022. (By paying in advance, this customer received 10% off the normal weekly fee of $120.) 17 18 Paid $250 on amount owed on cleaning supplies. 20 Paid $3 per share to buy 250 shares of Sage Hill Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 23 Billed customers $3,530 for cleaning services performed through February 20. 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). 25 Collected $2,050 cash from customers billed on February 16. 27 Paid $180 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.20 per share.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
(To record purchase of notes payable)
(To record purchase of equipment)
(To record payment of internet and phone services)
(To record payment of insurance)
(To record sale of equipment)
>
>
>
>
Transcribed Image Text:(To record purchase of notes payable) (To record purchase of equipment) (To record payment of internet and phone services) (To record payment of insurance) (To record sale of equipment) > > > >
Karen Noonan opened Sage Hill Cleaning Services Inc. on February 1, 2022. During February, the following
transactions were completed:
Feb. 1 Issued 4,100 shares of Sage Hill Cleaning Services common stock for $10,660. Each share has a $1.50 par.
1 Borrowed $6,560 on a 2-year, 6% note payable.
1 Paid $7,400 to purchase used floor and window cleaning equipment from a company
going out of business ($3,950 was for the floor equipment and $3,450 for the window
equipment).
1 Paid $180 for February Internet and phone services.
3 Purchased cleaning supplies for $800 on account.
4 Hired 4 employees. Each will be paid $390 per 5-day work week (Monday- Friday).
Employees will begin working Monday, February 9.
5 Obtained insurance coverage for $8,070 per year. Coverage runs from February 1, 2022,
through January 31, 2023. Karen paid $2,018 cash for the first quarter of coverage.
Discussions with the insurance agent indicated that providing outside window cleaning
services would cost too much to insure. Karen sold the window cleaning equipment for
$3,240 cash.
5
16 Billed customers $3,200 for cleaning services performed through February 13, 2022.
Received $432 from a customer for 4 weeks of cleaning services to begin February 21, 2022.
(By paying in advance, this customer received 10% off the normal weekly fee of $120.)
17
18
Paid $250 on amount owed on cleaning supplies.
Paid $3 per share to buy 250 shares of Sage Hill Cleaning Services common stock from a shareholder
who disagreed with management goals. The shares will be held as treasury shares.
20
23
Billed customers $3,530 for cleaning services performed through February 20.
24
Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20).
25
Collected $2,050 cash from customers billed on February 16.
27
Paid $180 for Internet and phone services for March.
28
Declared and paid a cash dividend of $0.20 per share.
(a)
Journalize the February transactions. (Credit account titles are automatically indented when amount is
entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
(To record issuance of common stock in excess of par)
Transcribed Image Text:Karen Noonan opened Sage Hill Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Feb. 1 Issued 4,100 shares of Sage Hill Cleaning Services common stock for $10,660. Each share has a $1.50 par. 1 Borrowed $6,560 on a 2-year, 6% note payable. 1 Paid $7,400 to purchase used floor and window cleaning equipment from a company going out of business ($3,950 was for the floor equipment and $3,450 for the window equipment). 1 Paid $180 for February Internet and phone services. 3 Purchased cleaning supplies for $800 on account. 4 Hired 4 employees. Each will be paid $390 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9. 5 Obtained insurance coverage for $8,070 per year. Coverage runs from February 1, 2022, through January 31, 2023. Karen paid $2,018 cash for the first quarter of coverage. Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window cleaning equipment for $3,240 cash. 5 16 Billed customers $3,200 for cleaning services performed through February 13, 2022. Received $432 from a customer for 4 weeks of cleaning services to begin February 21, 2022. (By paying in advance, this customer received 10% off the normal weekly fee of $120.) 17 18 Paid $250 on amount owed on cleaning supplies. Paid $3 per share to buy 250 shares of Sage Hill Cleaning Services common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 20 23 Billed customers $3,530 for cleaning services performed through February 20. 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). 25 Collected $2,050 cash from customers billed on February 16. 27 Paid $180 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.20 per share. (a) Journalize the February transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record issuance of common stock in excess of par)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education