Anna Clark opened Annas Cleaning Service on July 1, 2022. During July, the following transactions were completed.
July 1 Anya invested $20,000 cash in the business.
1 Purchased used truck for $12,000, paying $4,000 cash and the balance on account.
3 Purchased cleaning supplies for $2,100 on account.
5 Paid $1,800 cash on a 1-year insurance policy effective July 1.
12 Billed customers $4,500 for cleaning services.
18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies.
20 Paid $2,800 cash for employee salaries.
21 Collected $3,400 cash from customers billed on July 12.
25 Billed customers $6,000 for cleaning services.
31 Paid $350 for the monthly gasoline bill for the truck.
31 Withdrew $5,600 cash for personal use.
The chart of accounts for Annas Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated DepreciationEquipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 301 Owners Capital, No. 306 Owners Drawings, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense.
Unrecorded Transactions (adjustments):
Unbilled and uncollected revenue for services performed at July 31 were $2,700.
Depreciation on equipment for the month was $500.
One-twelfth of the insurance expired.
An inventory count shows $600 of cleaning supplies on hand at July 31.
Accrued but unpaid employee salaries were $1,000.
Instructions
- Journalize and post the July transactions in the ledger
- Journalize unrecorded transactions (adjustments) and update account balances in the ledger
- Prepare a trial balance at July 31. (Dont forget to adjusted trial balance also)
- Prepare the income statement and owners equity statement for July and a classified balance sheet at July 31.
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Journalize and post closing entries and complete the closing process.
\begin{tabular}{|l|l|l|r|} \multicolumn{5}{|c}{ Cash } \\ Date & \multicolumn{2}{|c|}{ Dr } & \multicolumn{1}{c|}{ Br } \\ \hline & & & 0 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Accounts Receivable \begin{tabular}{l|l|l|l|} \hline Date & Dr & Cr & Bal \\ \hline \end{tabular} \begin{tabular}{|l|l|l|r|} \hline & & & 0 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} ANNA Journal ANNA's Ledger ANNA WS ANNA Statements fx Enter text or formula here \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Account } & \multicolumn{2}{|c|}{ Unadjusted Trial Balance } & \multicolumn{2}{|c|}{ Adjustments } & \multicolumn{2}{|c|}{ Adjusted Trial Balance } & \multicolumn{2}{|c|}{ Income Statement } & \multicolumn{2}{|c|}{ Balance Sheet } & \multicolumn{2}{|c|}{ Post-Closing Trial Balance } \\ \hline & Dr & Cr & Dr & Cr & Dr & Cr & Dr & Cr & Dr & Cr & Dr & Cr \\ \hline Cash & & & & & 0 & & & & & & & \\ \hline Accounts Receivable & & & & & 0 & & & & & & & \\ \hline Supplies & & & & & 0 & & & & & & & \\ \hline Equipment & & & & & 0 & & & & & & & \\ \hline Accumulated Depreciation & & & & & & 0 & & & & & & \\ \hline Prepaid Insurance & & & & & 0 & & & & & & & \\ \hline Salaries Payable & & & & & & 0 & & & & & & \\ \hline Accounts Payable & & & & & & 0 & & & & & & \\ \hline Unearned Revenue & & & & & & 0 & & & & & & \\ \hline Owner's Capital & & & & & & 0 & & & & & & \\ \hline Owner's Drawings & & & & & 0 & & & & & & & \\ \hline Revenue (service) & & & & & & 0 & & & & & & \\ \hline Salaries Expense & & & & & 0 & & & & & & & \\ \hline Depreciation Expense & & & & & 0 & & & & & & & \\ \hline Supplies Expense & & & & & 0 & & & & & & & \\ \hline Insurance Expense & & & & & 0 & & & & & & & \\ \hline Utilities Expense & & & & & 0 & & & & & & & \\ \hline Gas Expense & & & & & 0 & & & & & & & \\ \hline Total & 0 & 0 & & & 0 & 0 & & 0 & & & & 0 \\ \hline & 0 & & & & 0 & & & & & & & 0 \\ \hline & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & \\ \hline \end{tabular} A B D E G H Income Statement ANNA'S CLEANING SERVICE 1 July to 31 july, 2022 Revenues: Service Revenue Rent Revenue Total Revenue Expenses: Salaries Expense Depreciation Expense Supplies Expense Insurance Expense Gas Expense Total Expenses Net Income Owner's Equity Statement ANNA'S CLEANING SERVICE 1 July to 31 july, 2022 Owner's Equity 1 July, 2022 Owner Investment Net Income Less Owner's Drawings Owner's Equity 31 July, 2022 Balance Sheet ANNA'S CLEANING SERVICE At 31 july, 2022 Current Assets: Cash A/R Supplies Prepaid Insurance Total Current Assets Long-Term Assets Equipment (Less Acc. Dep.) Total Long-term Assets Total Assets Current Liabilities: Accounts Payable Salaries Payable Total Current Liabilities Lont-Term Liabilities: Notes Payable Total Liabilities Owner's Equity: Total Liabilities \& OE \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} 0 0 J \begin{tabular}{|l|l|l|r|} \multicolumn{5}{|c}{ Cash } \\ Date & \multicolumn{2}{|c|}{ Dr } & \multicolumn{1}{c|}{ Br } \\ \hline & & & 0 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Accounts Receivable \begin{tabular}{l|l|l|l|} \hline Date & Dr & Cr & Bal \\ \hline \end{tabular} \begin{tabular}{|l|l|l|r|} \hline & & & 0 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} ANNA Journal ANNA's Ledger ANNA WS ANNA Statements fx Enter text or formula here \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Account } & \multicolumn{2}{|c|}{ Unadjusted Trial Balance } & \multicolumn{2}{|c|}{ Adjustments } & \multicolumn{2}{|c|}{ Adjusted Trial Balance } & \multicolumn{2}{|c|}{ Income Statement } & \multicolumn{2}{|c|}{ Balance Sheet } & \multicolumn{2}{|c|}{ Post-Closing Trial Balance } \\ \hline & Dr & Cr & Dr & Cr & Dr & Cr & Dr & Cr & Dr & Cr & Dr & Cr \\ \hline Cash & & & & & 0 & & & & & & & \\ \hline Accounts Receivable & & & & & 0 & & & & & & & \\ \hline Supplies & & & & & 0 & & & & & & & \\ \hline Equipment & & & & & 0 & & & & & & & \\ \hline Accumulated Depreciation & & & & & & 0 & & & & & & \\ \hline Prepaid Insurance & & & & & 0 & & & & & & & \\ \hline Salaries Payable & & & & & & 0 & & & & & & \\ \hline Accounts Payable & & & & & & 0 & & & & & & \\ \hline Unearned Revenue & & & & & & 0 & & & & & & \\ \hline Owner's Capital & & & & & & 0 & & & & & & \\ \hline Owner's Drawings & & & & & 0 & & & & & & & \\ \hline Revenue (service) & & & & & & 0 & & & & & & \\ \hline Salaries Expense & & & & & 0 & & & & & & & \\ \hline Depreciation Expense & & & & & 0 & & & & & & & \\ \hline Supplies Expense & & & & & 0 & & & & & & & \\ \hline Insurance Expense & & & & & 0 & & & & & & & \\ \hline Utilities Expense & & & & & 0 & & & & & & & \\ \hline Gas Expense & & & & & 0 & & & & & & & \\ \hline Total & 0 & 0 & & & 0 & 0 & & 0 & & & & 0 \\ \hline & 0 & & & & 0 & & & & & & & 0 \\ \hline & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & \\ \hline \end{tabular} A B D E G H Income Statement ANNA'S CLEANING SERVICE 1 July to 31 july, 2022 Revenues: Service Revenue Rent Revenue Total Revenue Expenses: Salaries Expense Depreciation Expense Supplies Expense Insurance Expense Gas Expense Total Expenses Net Income Owner's Equity Statement ANNA'S CLEANING SERVICE 1 July to 31 july, 2022 Owner's Equity 1 July, 2022 Owner Investment Net Income Less Owner's Drawings Owner's Equity 31 July, 2022 Balance Sheet ANNA'S CLEANING SERVICE At 31 july, 2022 Current Assets: Cash A/R Supplies Prepaid Insurance Total Current Assets Long-Term Assets Equipment (Less Acc. Dep.) Total Long-term Assets Total Assets Current Liabilities: Accounts Payable Salaries Payable Total Current Liabilities Lont-Term Liabilities: Notes Payable Total Liabilities Owner's Equity: Total Liabilities \& OE \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} 0 0 J
