Heidi Jara opened Jara's Cleaning Service on July 1, 2020. During July, the following transactions were completed.

July 1		Stockholders invested $20,000 cash in the business in exchange for common stock.
1		Purchased used truck for $9,000, paying $4,000 cash and the balance on account.
3		Purchased cleaning supplies for $2,100 on account.
5		Paid $1,800 cash on a 1-year insurance policy effective July 1.
12		Billed customers $4,500 for cleaning services.
18		Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies.
20		Paid $2,500 cash for employee salaries.
21		Collected $3,400 cash from customers billed on July 12.
25		Billed customers $6,000 for cleaning services.
31		Paid $350 for the monthly gasoline bill for the truck.
31		Paid a $5,600 cash dividend.

The chart of accounts for Jara's 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.

Instructions

b.Trial balance $34,700

c.Adjusted trial balance $38,900

d.Net income $7,200

Total assets $26,800

g.Post-closing trial balance $27,300

a.Journalize and post the July transactions. Use page J1 for the journal and the three-column form of account.

b.Prepare a trial balance at July 31 on a worksheet.

c.Enter the following adjustments on the worksheet and complete the worksheet.

1.Unbilled and uncollected revenue for services performed at July 31 were $2,700.

2.Depreciation on equipment for the month was $500.

3.One-twelfth of the insurance expired.

4.An inventory count shows $600 of cleaning supplies on hand at July 31.

5.Accrued but unpaid employee salaries were $1,000.

d.Prepare an income statement and a retained earnings statement for July and a classified balance sheet at July 31.

e.Journalize and post adjusting entries. Use page J2 for the journal.

f.Journalize and post closing entries and complete the closing process. Use page J3 for the journal.

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

Accounts Titles Ref. Credit Date July 1| Cash Debit 20,000 Common Stock 20,000 112 3 1 Equipment 9,000 4 4.000 115 Cash Accounts Payable 5,000 16 17 Ils 119 10 11 12 12 13 14 15 18 16 17 18 19 20 20 21 251 21 ||22 | 23 24 25 26 27 28 129 130 31 32 31 31 33 34 35 36 37 38 39 *The first two journal entries already completed for you. Please complete all remaining entries. *You need to come back later to fill in the "Ref" column during the posting process. Jara's Cleaning Service Worksheet For The Month Ended July 31, 2020 Adjusted Trial Balance Trial Balance Adjustments Balance Sheet Income Statement Dr. Cr Account Titles Dr. Cr. Dr. Cr. Dr. Cr Dr. Cr. 1 a 2,700 12 6,250 7,100 2,100 1,800 9,000 3 14 15 16 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Common Stock Dividends Service Revenue Gasoline Expense Salaries and Wages Expense Totals 4,200 20,000 7 5,600 | 8 10,500 2,700 a 19 350 10 11 2,500 34,700 34,700 12 13 14 15 16 Depreciation Expense Accumulated Depreciation - Equipment Insurance Expense Supplies Expense Salaries and Wages Payable Totals Net Income 17 18 19 20 Totals 21 22 *Trial Balance columns already entered for you. *Adjustments columns - first adjusting entries already entered for you and labeled with "a". You need to make the remaining 4 adjusting journal entries. *Complete the remaining worksheet columns. Cash No. 101 Date Explanation Ref. Debit Credit Balance Accounts Receivable No. 112 Date Explanation Credit Debit 4,500 Ref. J1 J1 J1 J2 Jul 12 21 25 31 Adjusting 3,400 Balance 4,500 1,100 7.100 9,800 6,000 2,700 Supplies No. 126 Date Explanation Ref. Debit Credit Balance Prepaid Insurance No. 130 Date Explanation Ref. Debit Credit Balance Equipment No. 157 Date Explanation Ref. Debit Credit Balance Accumulated Depreciation - Equipment No. 158 Date Explanation Ref. Debit Credit Balance Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance Salaries and Wages Payable No. 212 Date Explanation Ref. Debit Credit Balance Common Stock Ref No. 311 Balance Date Explanation Debit Credit Retained Earnings No. 320 Explanation Ref. Debit Date Jul 31 Closing Closing Credit 7,200 J3 J3 Balance 7,200 1,600 5,600 Dividends No. 332 Date Explanation Ref. Debit Credit Balance Income Summary No. 350 Date Explanation Ref. Debit Credit Balance Service Revenue Ref. No. 400 Balance Date Explanation Debit Credit Supplies Expense No. 631 Date Explanation Ref. Debit Credit Balance Gasoline Expense No. 633 Date Explanation Ref. Debit Credit Balance Depreciation Expense No. 711 Date Explanation Ref. Debit Credit Balance Insurance Expense No. 722 Date Explanation Ref. Debit Credit Balance Salaries and Wages Expense No. 726 Date Explanation Ref. Debit Credit Balance (d) Jara's Cleaning Service Income Statement For the Month Ended July 31, 2020 Revenues Service revenue Expenses $13,200 Jara's Cleaning Service Retained Earnings Statement For the Month Ended July 31, 2020 Retaine Earnings, July 1 $0 (d) (Continued) Jara's Cleaning Service Balance Sheet July 31, 2020 Assets $6,250 Current assets Cash Accounts receivable Supplies Prepaid insurance Total current assets Property, plant and equipment Equipment Less: Accumulated depreciation - Equipment Total assets Liabilities and Stockholders' Equity (e) General Journal J2 Ref. Debit Credit Date Accounts Titles Adjusting Entries July 31 Accounts Receivable Service Revneue 2,700 2,700 31 31 31 (f) General Journal Date Ref. Debit Credit Account Titles Closing Entries July 31 31 31 31 Jara's Cleaning Service Post-Closing Trial Balance July 31, 2020 Debit Credit