1

Stockholders invested $18,000 cash in the business in exchange for common stock.

1

Purchased a used truck for $10,000, paying $3,100 cash and the balance on account.

3

Purchased cleaning supplies for $800 on account.

5

Paid $1,788 on a 1-year insurance policy, effective July 1.

12

Billed customers $3,700 for cleaning services.

18

Paid $1,000 of amount owed on truck, and $200 of amount owed on cleaning supplies.

20

Paid $1,500 for employee salaries.

21

Collected $1,500 from customers billed on July 12.

25

Billed customers $1,700 for cleaning services.

31

Paid gasoline for the month on the truck, $500.

31

Declared and paid a $500 cash dividend.

(b)		Prepare a trial balance at July 31 on a worksheet.
(c)		Enter the following adjustments on the worksheet, and complete the worksheet.
		(1)		Unbilled fees for services performed at July 31 were $1,500.
		(2)		Depreciation on equipment for the month was $280.
		(3)		One-twelfth of the insurance expired.
		(4)		An inventory count shows $300 of cleaning supplies on hand at July 31.
		(5)		Accrued but unpaid employee salaries were $500.

Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit To close expense accounts.) To close net income/ (loss).) To close dividends.)