Ewok-Ackbar opened Ewok's Carpet Cleaners Inc. on March 1. During March, the following transactions were completed.

March 1, Issued $10,000 of common stock for $10,000 cash.
March 1, Purchased used truck for $6,000, paying $4,000 cash and the balance on account.
March 3, Purchased cleaning supplies for $1,200 on account.
March 5, Paid $1,800 cash on one-year insurance policy effective March 1.
March 14, Billed customers $2,800 for cleaning services.
March 18, Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies
March 20, Paid $1,500 cash for employee salaries.
March 21, Collected $1,600 cash from customers billed on March 14.
March 28, Billed customers $2,500 for cleaning services.
March 31, Paid gas and oil for month on truck $200.
March 31, Declared and paid a $700 cash dividend.

The chart of accounts for Ewok's Carpet Cleaners Inc. contains the following accounts:

No. 101 Cash
No. 112 Accounts Receivable
No. 128 Cleaning Supplies
No. 130 Prepaid Insurance
No. 157 Equipment
No. 158 Accumulated Depreciation - Equipment
No. 201 Accounts Payable
No. 212 Salaries Payable
No. 311 Common Stock
No. 320 Retained Earnings
No. 350 Income Summary
No. 400 Service Revenue
No. 633 Gas & Oil Expense
No. 634 Cleaning Supplies Expense
No. 711 Depreciation Expense
No. 722 Insurance Expense
No. 726 Salaries Expense

Instructions:

(a) Journalize and post the March transactions. Use page J1 for the journal and the three column form of account.

(b) Prepare a trial balance at March 31 on a work sheet.

(c) Enter the following adjustments on the work sheet and complete the work sheet.

(1) Earned but unbilled revenue at March 31 was $600.

(2) Depreciation on equipment for the month was $250.

(3) One-twelfth of the insurance expired.

(4) An inventory count shows $400 of cleaning supplies on hand at March 31.

(5) Accrued but unpaid employee salaries were $500.

(d) Journalize and post adjusting entries. Use page J2 for the journal.

(e) Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31.

(f) Journalize and post closing entries and complete the closing process. Use page J3 for the journal.

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