Exam.

Kristin Malone opened Kristin's Maids Cleaning Service on July $1,2015.$ During July, the company completed

the following transactions.

July I Stockholders invested $$14,000$ cash in the business in exchange for common stock.

$1$ Purchased a used truck for $$10,000,$ paying $$3,000$ cash and the balance on account.

$3$ Purchased cleaning supplies for $$800$ on account.

$5$ Paid $$1,800$ on a $1-$year insurance policy, effective July $1.$

$12$ Billed customers $$3,800$ for cleaning services.

$18$ Paid $$1,000$ of amount owed on truck, and $$400$ of amount owed on cleaning supplies.

$20$ Paid $$1,600$ for employee salaries.

$21$ Collected $$1,400$ from customers billed on July $12.$

$25$ Billed customers $$1,500$ for cleaning services.

$31$ Paid gasoline for the month on the truck, $$400.$

$31$ Declared and paid a $$600$ 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 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.

Instructions

$($a$)$Journalize and post the July transactions. Use page J$1$ for the journal.

$($b$)$Prepare a trial balance at July $31$ on a worksheet.

Trial balance $$25,700$

$($c$)$Enter the following adjustments on the worksheet, and complete the worksheet.

Unbilled fees for services performed at July $31$ were $$1,300.$

$2.$Depreciation on equipment for the month was $$200.$

$3.$One$-$twelfth of the insurance expired.

$4.$An inventory count shows $$100$ of cleaning supplies on hand at July $31.$

Accrued but unpaid employee salaries were $$500$

$($d$)$Prepare an income statement and a retained earnings statement for July, and a classified balance sheet at

July $31,2015.$

Net income $$3,050$

Total assets $$23,350$

$($e$)$Journalize and post the adjusting entries. Use page J$2$ for the journal.

$($f$)$Joumalize and post the closing entries, and complete the closing process. Use page J$3$ for the joumal.

$($g$)$Prepare a post$-$closing trial balance at July $31.$

Post$-$closing trial balance $$23,550$