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CASE 1 (30%) Cafu SA opened Cafu Cleaners on October 1, 2020

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CASE 1 (30%) Cafu SA opened Cafu Cleaners on October 1, 2020. During October, the following transactions were completed. Oct 1 Shareholders invested $30,000 cash in the business in exchange for ordinary shares. 1 Borrowed $6,000 cash by signing a 6-month, 6%, $6,000 note payable. Interest will be paid the first day of each subsequent month. 1 Purchased used truck for $8,000 cash. 2 Paid $1,500 cash to cover rent from October 1 through December 31. 3 Paid $2,400 cash on a 6-month insurance policy effective October 1. 6 Purchased cleaning supplies for $2,000 on account. 14 Billed customers $3,700 for cleaning services performed. 18 Paid $500 on amount owed on cleaning supplies. Paid $1,750 cash for employee salaries. 21 Collected $1,600 cash from customers billed on October 14. 28 Billed customers $4,200 for cleaning services performed. 
31 Paid $350 for gas and oil used in truck during month (use Maintenance and Repairs Expense) 31 Declared and paid a $900 cash dividend. Instructions: a. Journalize the October transactions. b. Post to the ledger accounts. (Use three-column form.) C. Prepare a trial balance at October 31. d. Journalize the following adjustments. 1. Services performed but unbilled and uncollected at October 31 were $200. 2. Depreciation on equipment for the month was $250. 3. One-sixth of the insurance expired. 4. An inventory count shows $280 of cleaning supplies on hand at October 31. 5. Accrued but unpaid employee salaries were $1,080. 6. One month of the prepaid rent has expired. 7. One month of interest expense related to the note payable has accrued and will be paid November 1. e. Post adjusting entries to the ledger. f. Prepare an adjusted trial balance. g. Prepare the income statement and a retained earnings statement for October and a classified statement of financial position at October 31. h. Journalize and post-closing entries and complete the closing process. i. Prepare a post-closing trial balance at October 31.