All steps in the accounting cycle Lee Chang opened Lee's Window Washing on July 1, 2014. In July, the following transactions were completed: J Lee invested $20,000 cash in the business. u y 1 1 Purchased a used truck for $25,000, paying $5,000 cash and signing a note payable for the balance. 3 Purchased supplies for $2,100 on account. 5 Paid $1,800 on a one-year insurance policy, effective July 1. 12 Billed customers $4,500 for cleaning services. 18 Paid $1,400 of amount owed on supplies. 20 Paid $2,000 for employee salaries. 21 Collected $3,400 from customers billed on July 12. 25 Billed customers $9,000 for cleaning services. 31 Paid $550 for fuel for the month on the truck. 31 Withdrew $1,600 cash for personal use. Instructions (a) Enter the above transactions in the Journal and post them in Ledger accounts (b) Prepare a Trial Balance at July 31. (c) Journalize and post the following Adjustments: 1. 2. Earned but unbilled fees at July 31 was $1,500. The truck has an estimated useful life of four years. 3. One-twelfth of the insurance expired. 4. 5. Accrued but unpaid employee salaries were $800. 6. The note payable has a 5.5% annual interest rate. An inventory count shows $700 of supplies on hand at July 31. 1 (d) Prepare an Adjusted Trial Balance. (e) Prepare the Income Statement and Statement of Owner's Equity for July, and a Classified Balance Sheet at July 31, 2014. Of the note payable, $5,000 must be paid by July 1, 2015. (f) Journalize and post the closing Entries. (g) Prepare a Post-Closing Trial Balance at July 31.