Car Wash issues financial statements quarterly

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Reference no: EM13898871

Wash & Go Car Wash issues financial statements quarterly (every three months).

On April 1st, 2014, Wash & Go Car Wash received $50,000 cash from the stockholders and in turn issued common stock to them.

On April 3rd, Wash & Go Car Wash paid $40,000 cash for land.

On April 3rd, Wash & Go paid cash of $3,700 for cleaning supplies.

On April 6th, Wash & Go performed services for clients and received cash of $7,000.

On April 6th, Wash & Go performed services for UPS on account. UPS did not pay immediately, so Wash & Go billed UPS for $3,000.

On April 30th, Wash & Go paid $1,500 for the following expenses: equipment rent - $1,100; and utilities - $400. Use one journal entry to show these itemized expenses.

On May 15th, Stacey Smith, the major stockholder of Wash & Go, remodeled her personal residence.

On June 1st, Wash & Go collected $1,000 cash on account from the client in transaction 5.

On June 1st, a local branch of Fed Ex delivery pays Wash & Go $6,000 for a six month pre-paid subscription to their car wash service.

On June 1st, Wash & Go prepays three months of store rent at $3,000 to add onto their existing storefront by renting a small space next door.

On June 7th, Wash & Go sold land for its cost of $22,000, receiving cash.

On June 26th, Wash & Go paid its shareholders cash dividends of $2,100.

On June 30th, at the end of the accounting period, $700 of cleaning supplies remain.

Wash & Go Car Wash is subject to a 15% income tax rate. It will be paid sometime after this accounting period.

PLEASE DO:

1. Adjusting Entries

2. Adjusted Trial balance

Reference no: EM13898871

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