**I need help with part d i already have the answer to the first part** please u
ID: 2578772 • Letter: #
Question
**I need help with part d i already have the answer to the first part** please use the journal entries listed.
Comprehensive Accounting Cycle Review 11-2 (Part Level Submission) Karen Noonan opened Skysong Inc. on February 1, 2017. During February, the following transactions were completed: Feb. 1 1 1 1 3 4 S 5 16 17 18 20 23 24 25 27 28 Issued 4,600 shares of Skysong common stock for $13,520. Each share has a $1.50 par. Borrowed $8,000 on a 2-year, 6% note payable. Paid $9,380 to purchase used floor and window cleaning equipment from a company going out of business ($3,680 was for the floor equipment and $5,700 for the window equipment) Paid $230 for February Internet and phone services. Purchased cleaning supplies for $1,020 on account. Hired 4 employees. Each will be paid $500 per 5-day work week (Monday- Friday). Employees will begin working Monday, February 9 Obtained insurance coverage for $9,840 per year. Coverage runs from February 1, 2017, through January 31, 2018. Karen paid $2,460 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 $4,110 cash Billed customers $4,060 for cleaning services performed through February 13, 2017 Received $504 from a customer for 4 weeks of cleaning services to begin February 21, 2017 Paid $310 on amount owed on cleaning supplies. Paid $3 per share to buy 300 shares of Skysong common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. Billed customers $4,470 for cleaning services performed through February 20 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20) Collected $2,600 cash from customers billed on February 16 Paid $230 for Internet and phone services for March. Declared and paid a cash dividend of $0.30 per shareExplanation / Answer
d. In the books of Skysong Inc.
Skysong Inc.
Income Statement
For the month ended February 28
Acccount Titles Debit Credit February 28 $ $ 1. Accounts Receivable 3,950 Service Revenue 3,950 2. Allowance for Doubtful Accounts 280 Accounts Receivable 280 3. Bad Debt Expense 568 Allowance for Doubtful Accounts 568 4. Depreciation Expense 60 Accumulated Depreciation : Equipment 60 5. Insurance Expense 820 Prepaid Insurance 820 6. Supplies Expense 600 Supplies 600 7. Unearned Service Revenue 126 Service Revenue 126 8. Salaries and Wages Expense 2,000 Salaries and Wages Payable 2,000 9. Interest Expense 40 Interest Payable 40 10. Income Tax Expense 540 Income Taxes Payable 540Related Questions
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