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1 Invested personal money of $14,000 into the new company bank account 1 Purchased a used van for $10,000, paying $3,000 cash and the balance
1 | Invested personal money of $14,000 into the new company bank account |
1 | Purchased a used van for $10,000, paying $3,000 cash and the balance on account |
3 | Purchased cleaning supplies for $800 on account. |
5 | Paid $1,800 on a one-year insurance policy, effective July 1. |
12 | Billed customer $3,800 for cleaning services. |
18 | Paid $1,000 of the amount owed on the van, and $400 of the amount owed on cleaning supplies. |
20 | Paid $1,600 for employee salaries. |
21 | collected $1,400 from customers billed on July 12. |
25 | Billed customers $1,500 for cleaning services. |
31 | Paid gas and oil for the month on the van, $400 |
31 | Paid herself $600 for personal use. |
(a) | Journalize the above entries for July. Use page J1 for the journal. |
(b) | Post the entries to the ledger accounts |
c) | Prepare a trial balance at July 31 on a worksheet |
(d) | Enter the following adustments on the worksheet, and complete the worksheet. |
1. Earned but unbilled fees at July 31 were $1,300 | |
2. Depreciation on equipment for the month was $200 | |
3. One month of the insurance expired. | |
4. An inventory count shows $100 of cleaning supplies on hand at July 31. | |
5. Accrued but unpaid employee salaries were $500 | |
(e) | Prepare the income statement and a statement of owner's equity for July |
(f) | Prepare a classified balance sheet for July 31, 2014 |
(g) | Journalize and post the adjusting entries. Use page J2 for the journal. |
(h) | Journalize and post the closing entries, and complete the closing process. Use page J3 for the journal. |
(i) | Prepare a post-closing trial balance at July 31. |
Journalize Adjusting and Closing Entries | ||||||||
For Barbara's Cleaning Service, a) Use General Journal J2 to journalize and post adjusting entries, and b) Use General Journal J3 to journalize and post closing entries. | ||||||||
GENERAL JOURNAL | J2 | |||||||
DATE | ACCOUNT TITLE AND EXPLANATION | REF. | DEBIT | CREDIT | ||||
GENERAL JOURNAL | J3 | |||||||
DATE | ACCOUNT TITLE AND EXPLANATION | REF. | DEBIT | CREDIT | ||||
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