adjusted trial balance. Betty Higgins started Betty s Cleaning Service on July 1 . The following transactions
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adjusted trial balance. Betty Higgins started Bettys Cleaning Service on July The following transactions occurred during Year :
July Invested $ cash in the business.
July Purchased a used truck for $ paying $ cash and borrowing $ by signing a note payable due in June, Year
July Paid $ for a year insurance policy starting July
July Billed customers $ for cleaning services.
July Purchased supplies on account for $
July Paid employees salaries of $
July Billed customers $ for cleaning services.
July Collected $ cash from the July billing.
July Paid $ for truck repairs.
July Withdrew $ cash for personal use.
Use the following chart of account numbers:
Cash #
Accounts Receivable #
Supplies #
Prepaid Insurance #
Vehicles #
Accumulated Depreciation, Vehicles #
Accounts Payable #
Salaries Payable #
Interest Payable #
Note Payable #
Betty Higgins, Capital #
Betty Higgins, Withdrawals #
Income Summary #
Service Revenue #
Depreciation Expense #
Repairs Expense #
Insurance Expense #
Interest Expense #
Salaries Expense #
Supplies Expense #
Legal Fees Expense #
Required
a Journalize the July transactions and post them to the ledger accounts.
b Prepare a trial balance for July Year
c Journalize and post the following July adjustments:
On July Betty provided $ worth of services that had not yet been recorded.
The truck has an estimated life of years and no residual value.
Insurance for month has expired.
Supplies on hand on July are $
Employees have earned $ and it will be paid in August.
The note payable has an annual rate of
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 postclosing trial balance.
h Complete the appropriate ledger accounts.
Note: Please leave one empty row between each journal entry. Also, dont use cents; round updown
Related Book For
Interpreting and Analyzing Financial Statements
ISBN: 978-0132746243
6th edition
Authors: Karen P. Schoenebeck, Mark P. Holtzman
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