Comprehensive Problem 4 a-g
Kristin Malone opened Kristins Maids Cleaning Service on July 1, 2019. During July, the company completed the following transactions.
| July | 1 | | Stockholders invested $15,000 cash in the business in exchange for common stock. |
| | 1 | | Purchased a used truck for $11,000, paying $3,200 cash and the balance on account. |
| | 3 | | Purchased cleaning supplies for $800 on account. |
| | 5 | | Paid $1,608 on a 1-year insurance policy, effective July 1. |
| | 12 | | Billed customers $3,900 for cleaning services. |
| | 18 | | Paid $1,000 of amount owed on truck, and $200 of amount owed on cleaning supplies. |
| | 20 | | Paid $1,600 for employee salaries. |
| | 21 | | Collected $1,600 from customers billed on July 12. |
| | 25 | | Billed customers $1,500 for cleaning services. |
| | 31 | | Paid gasoline for the month on the truck, $300. |
| | 31 | | Declared and paid a $700 cash dividend. |
The chart of accounts for Kristins Maids 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. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, 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.
Comprehensive Problem 4 a-g Kristin Malone opened Kristin's Maids Cleaning Service on July 1, 2019. During July, the company completed the following transactions. July 1 1 3 5 12 18 Stockholders invested $15,000 cash in the business in exchange for common stock. Purchased a used truck for $11,000, paying $3,200 cash and the balance on account. Purchased cleaning supplies for $800 on account. Paid $1,608 on a 1-year insurance policy, effective July 1. Billed customers $3,900 for cleaning services. Paid $1,000 of amount owed on truck, and $200 of amount owed on cleaning supplies. Paid $1,600 for employee salaries. Collected $1,600 from customers billed on July 12. Billed customers $1,500 for cleaning services. Paid gasoline for the month on the truck, $300. Declared and paid a $700 cash dividend. 20 21 25 31 31 The chart of accounts for Kristin's Maids Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. Journalize the July transactions. (Credit account titles are automatically indented when amount Date Account Titles and Explanation Debit Credit July 1 A Cash 15000 Common Stock 15000 (To record cash invested in the business.) July 1 A Equipment 11000 Accounts Payable 7800 Cash 3200 To record purchase of truck.) July 3 4 Supplies 800 Accounts Payable 800 July 5 4 Prepaid Insurance 1608 Cash 1608 July 12 Accounts Receivable 3900 Service Revenue 3900 July 18 Accounts Payable 1200 Cash 1200 N 7 July 20$ Salaries and Wages Expense 1600 Cash 1600 July 214 Cash 1600 Accounts Receivable 1600 July 25 A Accounts Receivable 1500 > Service Revenue 1500 July 31 4 Gasoline Expense 300 Cash 300 (To record gasoline expense.) July 31 4 Dividends 700 Cash 700 (To record dividend.) Post the July transactions. (Post entries in the order of journal entries presented above.) Cash No. 101 Date Explanation Ref Debit Credit Balance July 1 2 J1 15000 15000 July 1 2 J1 3200 11800 July 5 A J1 1608 10192 July 18 J1 1200 8992 July 20 J1 1600 7392 July 21 J1 1600 8992 July 31 J1 300 8692 July 31 J1 700 7992 Accounts Receivable No. 112 Date Explanation Ref Debit Credit Balance July 12 J1 3900 3900 July 21 J1 1600 2300 July 25 J1 1500 3800 No. 126 Supplies Date Explanation Ref Debit Credit Balance July 3 4 J1 800 800 No. 130 Prepaid Insurance Date Explanation Ref Debit Credit Balance July 5 J1 1608 1608 No. 157 Explanation Ref Debit Credit Equipment Date v. July 1 Balance J1 11000 11000 No. 201 Accounts Payable Date Explanation Ref Debit Credit Balance July 1 A J1 7800 7800 July 3 A J1 800 8600 July 18 4 J1 1200 7400 Common Stock No. 311 Date Explanation Ref Debit Credit Balance July 1 A J1 ... mx 15000 15000 Dividends No. 332 Explanation Ref Debit Credit Balance Date July 31 4 J1 700 700 Service Revenue No. 400 Date Explanation Ref Debit Credit Balance July 12 J1 3900 3900 July 25 J1 1500 5400 No. 633 Gasoline Expense Date Explanation Ref Debit Credit Balance July 31 A J1 300 300 No. 726 Salaries and Wages Expense Date Explanation Ref Debit Credit Balance July 20A J1 1600 1600 (b) (c) Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet, and complete the worksheet. (1) Unbilled fees for services performed at July 31 were $1,500. (2) Depreciation on equipment for the month was $220. (3) One-twelfth of the insurance expired. (4) An inventory count shows $200 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $400. KRISTIN'S MAIDS CLEANING SERVICE Prepare a worksheet. For the Month Ended July 31, 2019 Adjustments Adjusted Trial Balance Dr. Cr. Dr. Cr. Account Titles Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr 7992 Cash M x x M Accounts Receivable 3800 1500 X x Supplies 800 x X Prepaid Insurance 1608 q X Equipment 11000 Accounts Payable 7400 X Common Stock 15000 CLIC bitcold HOONE TOGO botold dil Dividends 700 ltdoll Service Revenue 5400 Gasoline Expense 300 ODI Salaries and Wages Expense 1600 Totals 27800 27800 Depreciation Expense Accum. Depr.-Equipment Insurance Expense lilili Supplies Expense IIIIII JUDO OOOO! Dodddddd DOODIDO DDDDDDDD Dodatlla Salaries and Wages Payable Totals Net Income Totals Prepare the income statement for July 31, 2019. (Enter negative amounts using either a negative sign p KRISTIN'S MAIDS CLEANING SERVICE Income Statement |x x lllll Your answer is partially correct. Try again. Prepare the retained earnings statement for July 31, 2019. (List items KRISTIN'S MAIDS CLEANING SERVICE Retained Earnings Statement X X $ X X X X X x X X Prepare a classified balance sheet at July 31, 2019. (List current assets in order of liquidity.) KRISTIN'S MAIDS CLEANING SERVICE Balance Sheet Assets x X > il Liabilities and Stockholders' Equity x S X X x Il Journalize the adjusting entries. (Credit account titles are automatically indented when amou No. Account Titles and Explanation Debit Credit 1. x! x x X 2. 3. x 4. dddddd 5. x Post the adjusting entries. (Post entries in the order of journal entries passed above.) Cash No. 101 Ref Debit Credit J1 15,000 Balance 15,000 11,800 J1 3,200 J1 1,608 J1 1,200 J1 1,600 J1 1,600 Date Explanation July 1 July 1 July 5 July 18 July 20 July 21 July 31 July 31 Accounts Receivable Date Explanation July 12 July 21 July 25 10,192 8,992 7,392 8,992 8,692 7,992 No. 112 J1 300 J1 700 Credit Balance J1 3,900 J1 1,600 3,900 2,300 3,800 J1 1,500 x Adjusting J2 Supplies No. 126 Date Explanation Ref Debit Credit Balance July 3 J1 800 800 X Adjusting J2 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance July 5 J1 1,608 1,608 x Adjusting 12 No. 157 Equipment Date Explanation Ref Debit Credit Balance July 1 J1 11,000 Accumulated Depreciation Equipment Date Explanation Ref 11,000 No. 158 Balance Debit Credit Adjusting J2 Accounts Payable No. 201 Ref Debit Credit Balance J1 7,800 7,800 8,600 J1 800 Date Explanation July 1 July 3 July 18 Salaries and Wages Payable Date Explanation J1 1,200 7,400 No. 212 Ref Debit Credit Balance Adjusting J2 Common Stock No. 311 Date Explanation Ref Debit Credit Balance July 1 J1 15,000 15,000 Dividends No. 332 Date Explanation Ref Debit Credit Balance July 31 J1 700 700 Service Revenue No. 400 Date Explanation Ref Debit Credit Balance J1 July 12 July 25 3,900 1,500 3,900 5,400 J1 x Adjusting 12 Gasoline Expense No. 633 Date Explanation Ref Debit Credit Balance July 31 J1 300 300 Supplies Expense No. 634 Date Explanation Ref Debit Credit Balance x x Adjusting J2 No. 711 Depreciation Expense Date Explanation Ref Debit Credit Balance x Adjusting J2 No. 722 Insurance Expense Date Explanation Ref Debit Credit Balance X Adjusting J2 No. 726 Salaries and Wages Expense Date Explanation July 20 Ref Debit Credit Balance J1 1,600 1,600 x x Adjusting J2 Journalize the closing entries. (Credit account titles are automatically indented when amount Account Titles and Explanation Debit Credit (To close revenue account.) (To close expense accounts.) x (To close net income / (loss).) x (To close dividends.) Post the closing entries and complete the closing process. (Post entries in the order of journal e Cash No. 101 Date Explanation Ref Debit Credit J1 15,000 J1 J1 July 1 July 1 July 5 July 18 July 20 July 21 July 31 July 31 3,200 1,608 1,200 1,600 J1 Balance 15,000 11,800 10,192 8,992 7,392 8,992 8,692 7,992 J1 J1 1,600 J1 300 J1 700 Accounts Receivable No. 112 Date Explanation Ref Debit dit Balance J1 3,900 3,900 J1 1,600 2,300 July 12 July 21 July 25 July 31 Supplies J1 1,500 1,500 Adjusting J2 3,800 5,300 No. 126 Date Explanation Ref Debit Credit Balance J1 800 800 July 3 July 31 Prepaid Insurance Adjusting J2 600 200 No. 130 Date Explanation Ref Debit Credit Balance J1 1,608 July 5 July 31 Equipment 1,608 1,474 Adjusting 12 134 No. 157 Date Explanation Ref Debit Credit Balance July 1 J1 11,000 11,000 No. 158 Accumulated Depreciation-Equipment Date Explanation July 31 Adjusting Ref Debit Credit Balance 12 220 220 Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance July 1 J1 7,800 J1 800 7,800 8,600 7,400 J1 1,200 No. 212 July 3 July 18 Salaries and Wages Payable Date Explanation July 31 Adjusting Common Stock Ref Debit Credit Balance J2 400 400 No. 311 Date Explanation Ref Debit Credit Balance July 1 J1 15,000 15,000 No. 320 Retained Earnings Date Explanation Ref Debit Credit Balance x x Closing J3 X= Closing 13 Dividends No. 332 Date Explanation Ref Debit Credit Balance July 31 J1 700 700 x Closing J3 Income Summary No. 350 Date Explanation Ref Debit Credit Balance Closing 23 X DOO Closing 13 X Closing w Service Revenue No. 400 Date Explanation Ref Debit Credit Balance J1 July 12 July 25 July 31 J1 3,900 1,500 1,500 3,900 5,400 6,900 Adjusting J2 Closing 13 Gasoline Expense No. 633 Date Explanation Ref Debit Credit Balance July 31 J1 300 300 Closing J3 Supplies Expense No. 634 Date Ref Debit Credit Explanation Adjusting Balance 600 July 31 J2 600 Closing 23 Depreciation Expense No. 711 Date Ref Debit Credit Balance Explanation Adjusting July 31 J2 220 220 x Closing 13 Insurance Expense No. 722 Date Ref Debit Credit Balance Explanation Adjusting July 31 J2 134 134 x x Closing J3 No. 726 Ref Debit Credit Balance Salaries and Wages Expense Date Explanation July 20 July 31 Adjusting J1 1,600 1,600 2,000 J2 400 x x Closing J3 Prepare a post-closing trial balance at July 31. KRISTIN'S MAIDS CLEANING SERVICE Post-Closing Trial Balance Debit Credit x idi bbddddddddd Totals
