Dean Winchester opened Ghost Cleaners on March 1, 2015. During March, the following transactions were completed.

Mar. 1 Issued 10,000 shares of common stock for $15,000 cash.

1 Purchased used truck for $8,000, paying $3,000 cash and the balance on an account.

3 Purchased cleaning supplies for $2,000 on account

5 Paid $2,400 cash on a 6-month insurance policy effective March 1.

14 Billed customers $3,700 for cleaning services.

18 Paid $1,500 cash on amount owed on truck and $500 on the 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.

31 Paid $350 for gas and oil used in the truck during March.

31 Declared and paid a $900 cash dividend.

The chart of accounts for Ghost Cleaners contains the following accounts:

Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Gas and Oil Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense.

Instructions

a) Journalize the March transactions.

b) Post to the ledge accounts (use T-accounts or GL accounts).

c) Prepare a trial balance at March 31.

d) Journalize the following adjustments:

1. Services performed but unbilled on March 31 amounted to $200.

2. Depreciation on equipment for March was $250.

3. One-sixth of the insurance expired.

4. A count of supplies on March 31 showed $280 worth on hand.

5. Accrued but unpaid employee salaries were $1,080.

e) Post adjusting entries to the T or GL accounts.

f) Prepare an adjusted trial balance.

g) Prepare the income statement, retained earnings statement and a classified balance sheet at March 31.

h) Journalize and post closing entries and complete the closing process.

i) Prepare a post-closing trial balance at March 31.