August 5 received $1,000 in cash from Waterfront Catering, a catering company, for 10 hours of dry cleaning for tableclothsapkins/chair covers. (Credit to unearned revenue) August 8 Bought $1100 in cleaning supplies; will pay within 30 days August 15 Cleaning revenue for the first two weeks is $3,300, of which $1,600 is received in cash August 17 Received $2,225 in the mail from charge customers August 18 Paid $700 owed on the computer purchased August 1 August 19 Paid $350 towards the supplies purchased on August 8 August 21 Wrote cheque 520 in the amount of $1,688.20 to pay wages for August 1420 August 22 Paid 1000 to reduce the amount owned on a note; $425 of the amount is for the interest expense August 25 Paid the telephone bill, write cheque 521 for $305 August 28 Nathaniel withdrew $1,800 for personal use Instructions 1. Journalize the transactions in a general journal. Number the first journal page 15. 2. Post the transactions to the general ledger. 3. Prepare a trial balance as of August 31, 20XX 4. Prepare adjusting entries and record in the general journal from the following information a. The inventory of supplies on August 31 , is $875.60 (based on a physical count). b. An insurance policy was purchased on August 1 at a cost of $1,200 and is for a 12 month period. c. The equipment has a useful life of 5 years and a salvage value of $1,000. d. The delivery van has a useful life of 4 years and a salvage value of $1,240. e. The computer has a useful life of 3 years and no salvage value. f. 3 hours of dry cleaning (at $50 per hours) were performed by Nathaniel during August for Waterfront Catering. See August 5 transaction. g. August 31 falls on a Monday. Record 1 day wage expense at $335.26. h. Unrecorded Cleaning Pickup Revenue for the last 2 days of August (which customers have not paid or been invoiced) is $1,055.35. 5. Post the adjusting entries to the General Ledger 6. Prepare a new trial balance at August 30 7. Prepare an income statement for the month of August 20XX 8. Prepare a balance sheet on August 31,20XX detailing the changes in Owner's Equity The chart of accounts for Kwick Kleaners as of August 1, 20XX are as follows: Chart of Accounts 101 , Cash 110 Accounts Receivable 114 Cleaning Supplies 115 Cleaning Equipment 605 deuning supplies Expense. 625 Insvaresnce Expense 116 Accumulated Amortization: Cleaning Equipment 127 Prepaid Insurance 120 Office Equipment 122 Accumulated Amortization - Office Equipment 125 Delivery Van 127 Accumulated Amortization - Delivery Van 210 Accounts Payable 220 Notes Payable 225 Unearned Revenue 230 Wages Payable 310 Nathaniel Emerson, Capital 320 Nathaniel Emerson, Drawing 350 Income Summary 410 Cleaning Revenue 415 Cleaning Pickup Revenue 601 Rent Expense 610 Advertising Expense 615 Wages Expense 620 Salary Expense 630 Utilities Expense 631 Amortization Expense 635 Interest Expense August 1 Paid rent for August, $1,500 August 1 Bought a computer for the office; paid $500 cash down and agreed to pay the balance of $700 within 30 days August 2 Purchased a new washer and dryer for $4,900. Paid $500 down and will pay the remainder in 90 days. August 3 Purchased a Delivery Van for $15,000; took an interest-bearing note over 3 years August 4 Placed an ad in the newspaper for $100; the amount is due in 30 days August 5 received $1,000 in cash from Waterfront Catering, a catering company, for 10 hours of dry cleaning for tableclothsapkins/chair covers. (Credit to unearned revenue) August 8 Bought $1100 in cleaning supplies; will pay within 30 days August 15 Cleaning revenue for the first two weeks is $3,300, of which $1,600 is received in cash August 17 Received $2,225 in the mail from charge customers August 18 Paid $700 owed on the computer purchased August 1 August 19 Paid $350 towards the supplies purchased on August 8 August 21 Wrote cheque 520 in the amount of $1,688.20 to pay wages for August 1420 August 22 Paid 1000 to reduce the amount owned on a note; $425 of the amount is for the interest expense August 25 Paid the telephone bill, write cheque 521 for $305 August 28 Nathaniel withdrew $1,800 for personal use Instructions 1. Journalize the transactions in a general journal. Number the first journal page 15. 2. Post the transactions to the general ledger. 3. Prepare a trial balance as of August 31, 20XX 4. Prepare adjusting entries and record in the general journal from the following information a. The inventory of supplies on August 31 , is $875.60 (based on a physical count). b. An insurance policy was purchased on August 1 at a cost of $1,200 and is for a 12 month period. c. The equipment has a useful life of 5 years and a salvage value of $1,000. d. The delivery van has a useful life of 4 years and a salvage value of $1,240. e. The computer has a useful life of 3 years and no salvage value. f. 3 hours of dry cleaning (at $50 per hours) were performed by Nathaniel during August for Waterfront Catering. See August 5 transaction. g. August 31 falls on a Monday. Record 1 day wage expense at $335.26. h. Unrecorded Cleaning Pickup Revenue for the last 2 days of August (which customers have not paid or been invoiced) is $1,055.35. 5. Post the adjusting entries to the General Ledger 6. Prepare a new trial balance at August 30 7. Prepare an income statement for the month of August 20XX 8. Prepare a balance sheet on August 31,20XX detailing the changes in Owner's Equity The chart of accounts for Kwick Kleaners as of August 1, 20XX are as follows: Chart of Accounts 101 , Cash 110 Accounts Receivable 114 Cleaning Supplies 115 Cleaning Equipment 605 deuning supplies Expense. 625 Insvaresnce Expense 116 Accumulated Amortization: Cleaning Equipment 127 Prepaid Insurance 120 Office Equipment 122 Accumulated Amortization - Office Equipment 125 Delivery Van 127 Accumulated Amortization - Delivery Van 210 Accounts Payable 220 Notes Payable 225 Unearned Revenue 230 Wages Payable 310 Nathaniel Emerson, Capital 320 Nathaniel Emerson, Drawing 350 Income Summary 410 Cleaning Revenue 415 Cleaning Pickup Revenue 601 Rent Expense 610 Advertising Expense 615 Wages Expense 620 Salary Expense 630 Utilities Expense 631 Amortization Expense 635 Interest Expense August 1 Paid rent for August, $1,500 August 1 Bought a computer for the office; paid $500 cash down and agreed to pay the balance of $700 within 30 days August 2 Purchased a new washer and dryer for $4,900. Paid $500 down and will pay the remainder in 90 days. August 3 Purchased a Delivery Van for $15,000; took an interest-bearing note over 3 years August 4 Placed an ad in the newspaper for $100; the amount is due in 30 days