Comprehensive Problem (Problem info and working papers) Bob opened Bob's Plumbing on July 01, 2020. During July the company completed these transactions. July 01 Bob invested $14,000 cash into the business in exchange for common stock. 02 Bought a used truck for $10,000 paying $3,000 in cash with the balance on account. 03 Bought plumbing supplies for $800 on account. 05 Paid $1,800 on a 1-year insurance policy, effective July 01. 12 Billed customers for $3,800 for plumbing services. 18 Pald $1,000 of amount owed on the truck AND % of the amount owed on plumbing supplies. 20 Paid $1,600 for employee salaries. 21 Collected $1,400 from customers previously billed on July 12. 25 Billed customers $1,500 for plumbing services. 30 Paid gasoline for the month on the truck, $400. 31 Declared and pald a $600 cash dividend. Use this "Chart of Accounts": Cash: Account Receivable; Supplies; Prepaid Insurance; Truck; Accumulated Depreciation-Truck; Accounts Payable; Salaries Payable; Common Stock: Retained Earnings; Dividends; Income Summary; Service Revenue; Supplies Expense; Gasoline Expense; Depreciation Expense; Insurance Expense; Salaries Expense. Instructions: (a) Journalize AND Post the July transactions. (b) Prepare a (TB) Trial Balance at July 31 on a worksheet ... (Completed for you!) (Hint... venty that YOUR posting & amounts "add up" to this correct TB... If your numbers don't match the TB... FIX your joumal entries (and then post and 're-check"!) (c) Enter the following adjustments, AND total the ADJ columns, on the worksheet. (1) Unbilled fees for services performed at July 31 were $1,300. (2) Depreciation on the Truck for the month was $200. (3) One month (July) of the 1-year insurance policy was used up. (4) An inventory count shows that $100 of plumbing supplies remains unused as of July 31. (5) Accrued, but unpaid, employee salaries were $500. FYI: (ADJ Cols total = $2,850) If not-redo! (d) Complete, including totals, the INC ST and BAL SHT columns of the worksheet. (e) Prepare the financial statements. (f) Journalize AND POST the Adjusting entries. (g) Journalize AND POST the closing entries. Comprehensive Problem... Working Papers (a) General Journal Date July 1 Account Titles and Explanation 2 3 5 12 18 20 21 25 30 31 Debit Credit Cash Depreciation Expense - Truck Date Dabit Credit Balance July 1 Date Salaries Payable Dabir Credit Balance Date Adj 2 Clo 5 18 20 Common Stock 21 Date 30 Debit Credit Balance Salaries Expense Date Debit Credit Balance Debit Data Credit Balance Insurance Expense Dabil July 20 Adj Clo Credit Balance Adj Clo 31 Manually add up your balance column to see If your posting comes to 6,600 If not-fix it. Retained Earnings Debut Credit Balc Accounts Receivable Instructors Note: I completed instruction (b) and provided other column totals to help you. FYI: If the Trial Bal amounts (below) equal YOUR ending balances (of each account that you posted)-then your journal entries are probably correct. If your posted account balances are different than the Trial Balance amounts below-there is probably an error in one (or more) of your journal entries. Find it. Fix it. Date Debit Credit Balance Dividends Debir Credit Balance (b), (c), (d) Bob's Plumbing Inc. Worksheet For the Month Ended July 31, 2020 Account Tide Supplies Data Trial Balance Adjustments Debit Credit Balance Income Summary Income Statement Balance Sheet Date Dabir Credit Balance Cash Debut 6,600 Credit Debit Credit Debit Credit Debit Cred Accts Recble 3,900 Prepaid Insurance Supplies 800 Date Dabir Credir Balance Prepaid Ins. 1,800 Service Revenue Dato Truck 10,000 Dobit Credit Balance Accts Payable Common Stock 6,400 14,000 Truck Date Debit Credit Balance Dividends 600 Service Revenue 5,300 Gasoline Expense Accumulated Depreciation Truck Date Debit Credit Supplies Expense Date Debit Credit Balance Balance Salaries Expense 400 1,600 Totals 25,700 25,700 Depreciation Exp Acc Depr-Truck Accounts Payable Gasoline Expense Date Dabir Credit Balance Date Debit Creat Insurance Expense Supplies Expense Salaries Payable Totals Net Income Totals 6,600 6,600 24,150 24,150 Instructors Note: Trial Balance and adjustment columns should balance (VERIFY by adding them up). However, the debit & credit columns of the INC ST columns (and the BAL SHT cols), will NOT be equal until you "plug in" the Net Income (Rev- Exp) in the appropriate column. Instructors Tip: On the worksheet, account and amount are in EITHER an Income Statement column OR a balance sheet column - NOT BOTH. (For each account - make sure you combine the Trial Balance col amount with the Adjustment col amount. THEN-copy those account balances into the appropriate INC ST col ... OR... BAL SHT col). Instructors Tip: The "xxx" indicate a space without any amounts. (e) Revenues: Bob's Plumbing Inc Income Statement For the Month Ended July 31, 2017 Expenses: Total Expenses Net Income XXXXXX (e) Current Assets: Total Current Assets Bob's Plumbing Service Classified Balance Sheet July 31, 2017 Assets XXXXXXX XXXOOXX XXXXXX xxxxxxx XXXXXXXX XXXXXX Property Plant and Equipment: XXXXXXX XXXXXXX XXXXXXX XXXXXXX Total Property Plant & Equipment Total Assets XXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXX XXXXXXX XXXXXX Completed for you (you may need an amount from this for the CLASSIFIED Balance Sheet) Bob's Plumbing Service Statement of Changes in Stockholders Equity For the Month Ended, July 31 Retained Earnings, July 1 (beginning) 0 Add: Net Income 3,050 Less: Dividends 600 Retained Earnings, July 31 (ending) 2,450 Current Liabilities: Liabilities and Stockholders' Equity Total Current Liabilities Stockholders Equity: XXXXXXXXX XXXXXXXX XXXXXXXX XXXXXXX XXXKKK XXXOOXX Total Stockholders Equity XXXXXXX Total Liability & Equity XXXXXX MORE BELOW Instruction (f) ... Journalize and Post Adjusting Entries Date July 31 (1) July 31 (2) July 31 (3) July 31 (4) July 31 (5) Account Titles and Explanation Debit Credit Debit Credit Instruction (g) ... Journalize and Post Closing Entries Date July 31 (1) July 31 (2) Account Titles and Explanation July 31 (3) July 31 (4)