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adjusted trial balance. Betty Higgins started Betty s Cleaning Service on July 1 . The following transactions occurred during Year 1 : July 1 Invested

adjusted trial balance. Betty Higgins started Bettys Cleaning Service on July 1. The following transactions occurred during Year 1:
July 1Invested $20,000 cash in the business.
July 1Purchased a used truck for $25,000, paying $5,000 cash and borrowing $20,000 by signing a note payable due in June, Year 2.
July 1Paid $2,800 for a 1-year insurance policy starting July 1.
July 5Billed customers $3,300 for cleaning services.
July 12Purchased supplies on account for $2,100.
July 18Paid employees salaries of $3,000.
July 25Billed customers $ 8,900 for cleaning services.
July 28Collected $3,300 cash from the July 5 billing.
July 31Paid $550 for truck repairs.
July 31Withdrew $2,600 cash for personal use.
Use the following chart of account numbers:
Cash #1100
Accounts Receivable #1200
Supplies #1300
Prepaid Insurance # 1400
Vehicles #1500
Accumulated Depreciation, Vehicles #1600
Accounts Payable #2100
Salaries Payable # 2200
Interest Payable # 2300
Note Payable # 2400
Betty Higgins, Capital #3100
Betty Higgins, Withdrawals #3200
Income Summary # 3300
Service Revenue #4100
Depreciation Expense # 5100
Repairs Expense # 5200
Insurance Expense # 5300
Interest Expense # 5400
Salaries Expense # 5500
Supplies Expense # 5600
Legal Fees Expense #5300
Required
a. Journalize the July transactions and post them to the ledger accounts.
b. Prepare a trial balance for July 31, Year 1.
c. Journalize and post the following July adjustments:
On July 31, Betty provided $1,500 worth of services that had not yet been recorded.
The truck has an estimated life of 5 years and no residual value.
Insurance for 1 month has expired.
Supplies on hand on July 31 are $700.
Employees have earned $800, and it will be paid in August.
The note payable has an annual rate of 5.5%.
d. Prepare an adjusted trial balance.
e. Prepare (i) an income statement, (ii) a statement of owners equity, and (iii) a classified balance sheet for the month of July.
f. Journalize and post the closing entries.
g. Prepare a post-closing trial balance.
h. Complete the appropriate ledger accounts.
Note: Please leave one empty row between each journal entry. Also, dont use cents; round up/down.

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a Journal Entries 1 Cash 20000 Capital 20000 2 Truck 25000 Cash 5000 Note Payable 20000 3 Insurance Exp 2800 Prepaid Ins 2800 4 AR 3300 Services Rev 3... blur-text-image

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