Cutting Tree Services Ltd, which began operations on 1 July 2009, had the following transactions:

At 31 July, accrued interest on the loan amounted to €70, while accrued salaries totalled €350. Also, since the last bills were sent out to clients, the firm has provided services billed at €3,400. Three weeks worth of the money received in advance has now been earned.
Required 1 Record the transactions for July in the general journal.
2 Post the journal entries to the correct ledger accounts.
3 Prepare a profit and loss account and balance sheet.
4 Record Cutting Tree Services Ltd’s adjusting entries in the journal and post to the correct ledger accounts.
5 Record Cutting Tree Services Ltd’s closing entries in the journal and post to the correct ledger accounts.

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July 1 Received 50,000 from Ilias, the owner, as an investment to commence his business. 2 Purchased 15,000 worth of office equipment for cash; the equipment has a life of six years. 3 Paid 960 for a six-month general insurance policy. 8 Received 440 from a client to provide services evenly over the next eight weeks. 11 Paid rent on the premises for the next two months, 4,200. 13 Billed clients for services provided, 6,800. 15 Applied for a loan of 19,000 for the purchase of an office computer. 17 Received 1,750 from clients billed on 14 July. 22 Received the proceeds from the loan that was applied for on the 15 July. 28 Purchased 9,000 worth of the new computer equipment paying for it in cash. This will not be depreciated until the end of next month. 29 Paid the salaries of the office staff, 2,900. 30 Recorded 290 of sundry expenses that were incurred in July but will be paid during the next month.