Question
Comprehensive Problem 4 Kristin Malone opened Kristin's Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions. July1Stockholders invested $17,000
Kristin Malone opened Kristin's Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions.
July1Stockholders invested $17,000 cash in the business in exchange for common stock.1Purchased a used truck for $11,000, paying $2,800 cash and the balance on account.3Purchased cleaning supplies for $800 on account.5Paid $2,136 on a 1-year insurance policy, effective July 1.12Billed customers $4,000 for cleaning services.18Paid $1,300 of amount owed on truck, and $220 of amount owed on cleaning supplies.20Paid $1,500 for employee salaries.21Collected $1,700 from customers billed on July 12.25Billed customers $1,600 for cleaning services.31Paid gasoline for the month on the truck, $400.31Declared and paid a $500 cash dividend.
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 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.
Journalize the July transactions.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
(To record cash invested in the business.)
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
(To record purchase of truck.)
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
(To record gasoline expense.)
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
(To record dividend.)
Postthe July transactions.(Post entries in the order of journal entries presented above.)
Cash
No. 101
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Accounts Receivable
No. 112
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Supplies
No. 126
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Prepaid Insurance
No. 130
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Equipment
No. 157
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Accounts Payable
No. 201
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Common Stock
No. 311
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Dividends
No. 332
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Service Revenue
No. 400
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Gasoline Expense
No. 633
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
Salaries and Wages Expense
No. 726
Date
Explanation
Ref
Debit
Credit
Balance
July 1
July 3
July 5
July 12
July 18
July 20
July 21
July 25
July 31
J1
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
