Bill Gates opened Gates Carpet Cleaners…
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Bill Gates opened Gates Carpet Cleaners on March 1 by borrowing money and issuing stock. During March, the following transactions were completed.
| Mar. | 1 | Borrowed $100,000 from the bank on a note payable, 3% interest rate. |
| 1 | Stockholders invested $60,000 cash in the business. | |
| 5 | Purchased used equipment for $7,000, paying $1,000 cash and the balance on account. | |
| 8 | Purchased cleaning supplies for $1,500 on account. | |
| 10 | Paid $1,200 for a one-year insurance policy. | |
| 14 | Billed customers $16,000 for cleaning services. | |
| 18 | Paid amount owed on equipment. | |
| 20 | Paid $2,500 cash for employee salaries. | |
| 21 | Collected $4,000 cash from customers billed on March 14. | |
| 28 | Billed customers $4,500 for cleaning services. | |
| 29 | Paid gas and oil for month on truck $800. | |
| 30 | Paid cash dividends $3,000 to stockholders | |
| 31 | Recorded one month accrued interest on the note. | |
| 31 | Recorded one month depreciation on the equipment, $150. |
The chart of accounts for Gates Carpet Cleaners 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. 205 Interest Payable, No. 212 Notes Payable, No. 301 Common Stock, No. 306, Dividends, No. 350 Retained Earnings, 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, and No. 730 Interest Expense