I need help answering Part III please see attachments for Part III and answers to Part I and II. In Part III , we continue
I need help answering Part III please see attachments for Part III and answers to Part I and II.
In Part III, we continue working on the Sparkly Cleaners accounting records. Therefore, this document still contains the facts given in the Part I and II. In Part III, need to prepare the financial statements.
Part III
1. Prepare the income statement for July. 2. Prepare a retained earnings statement for July. 3. Prepare a classified balance sheet at July 31.
(Part I) - see answers in attachment Shana Cameron opened Sparkly Cleaners on July 1, 2022. During July, the following transactions were completed.
July 1 Issued 8,000 shares of common stock for $12,000 cash.
July 1 Borrowed $4,800 cash by signing a 6-month, 6%, $4,800 note payable. Interest will be paid the first day of each subsequent month.
July 1 Purchased used truck for $6,400 cash.
July 2 Purchased cleaning supplies for $1,600 on account.
July 2 Paid $1,800 cash on a 6-month insurance policy effective July 1.
July 2 Paid $1,200 cash to cover rent from July 1 through September 30.
July 10 Billed customers $2,960 for cleaning services performed.
July 18 Paid $400 on amount owed on cleaning supplies.
July 20 Paid $1,400 cash for employee salaries.
July 21 Collected $1,280 cash from customers billed on July 10.
July 28 Billed customers $3,360 for cleaning services performed.
July 31 Paid $280 for gas and oil used in truck during month (use Maintenance and Repairs Expense).
July 31 Declared and paid a $720 cash dividend. The chart of accounts for Sparkly Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense. - Not all of the accounts will be used in Part I. 1. Journalize the July transactions.
2. Post to the ledger accounts.
3. Prepare a trial balance at July 31.
Part II - see attachment for answers
1. Journalize the following adjustments.
a. Services performed but unbilled and uncollected at July 31 was $400.
b. Depreciation on equipment for the month was $260.
c. One-sixth of the insurance expired.
d. An inventory count shows $290 of cleaning supplies on hand at July 31.
e. Accrued but unpaid employee salaries were $1,380.
f. One month of the prepaid rent has expired.
g. One month of interest expense related to the note payable has accrued and will be paid August 1. 2. Post adjusting entries to the ledger accounts.
a. Again, you are continuing the Sparkly Cleaners problem, so continue building on the general ledger you prepared in Part I. (If you post to an existing account, the balance should be re-calculated. If there is a new account in the adjusting entries, you will create a new T-account.)
b. I have also uploaded the answer key to Part I on Canvas, so that you can fix any error you made in Part I (if any) before you post the adjusting entries. 3. Prepare an adjusted trial balance.
Part 1 answers
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b705876b74_871669b7057d0c69.jpg)
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![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b7059e5f14_873669b7059655f1.jpg)
Part 2 answers
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b705a9db3c_874669b705a1b551.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b705b7ac15_874669b705ae38c1.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b705c4e172_875669b705bc4251.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b705d0a677_876669b705c76b38.jpg)
Part III question document
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b705dcad7e_877669b705d2fd31.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b705eaf2da_878669b705e1d0fd.jpg)
I. Joum 2. Post to the ledger accounts. \begin{tabular}{ll|ll} \multicolumn{4}{c}{ Cosh } \\ \hline/01 & 12,000 & /101 & 6,400 \\ /01 & 4,800 & /02 & 1,800 \\ /21 & 1,280 & n/02 & 1,200 \\ & & /18 & 400 \\ & & /20 & 1,400 \\ & & /31 & 280 \\ & & /31 & 20 \\ \hline/31 & Bol. 58800 & & \end{tabular} Notes Payable \begin{tabular}{l|ll} \hline & /1 & 4,800 \\ \hline & Bae. & 4,800 \end{tabular} Account3 Payable \begin{tabular}{ll|ll} \hlinen/18 & 400 & 7/2 & 1,600 \\ \hline & & Bal. & 1,200 \end{tabular} Accourts Receivable \begin{tabular}{ll|ll} \hline 9/10 & 2,960 & 9/4 & 1,280 \\ 9/28 & 3,360 & \\ \hline Bal. & 5,940 & \end{tabular} Common stock \begin{tabular}{l|ll} \hline & n/1 & 12000 \\ \hline & Bol. & 12,000 \end{tabular} Dividends \begin{tabular}{cc|c} \multicolumn{3}{c|}{ Prepod Insurance } \\ \hline 9/2 & 1,800 & \\ \hline Bal. & 1,800 & \end{tabular} \begin{tabular}{l|ll} \hline & 7110 & 2960 \\ & 9128 & 3,360 \\ \hline & Bal. & 6,320 \end{tabular} \begin{tabular}{ll|l} \multicolumn{3}{c}{ Prepard Rent } \\ \hline/2 & 1,200 & \\ \hline Bot. & 1,200 & \end{tabular} Maintenance and Repairs Expense \begin{tabular}{cc|l} \hline/31 & 280 & \\ \hline Bal. & 280 & \end{tabular} \begin{tabular}{ll|l} \multicolumn{3}{c}{ Equippment } \\ \hline 9/1 & 6.400 & \\ \hline Bol. & 6.400 & \end{tabular} Salaries and Wages Expense \begin{tabular}{cc|l} \hline 7/20 & 1,400 & \\ \hline Bah. & 1,400 & \end{tabular} 3. Prepare a trial balance at Julyz 3I. PartII July-31 Accounts Receivable 400 Senice Revenue 400 Depreciation Expense to Acc. Depreciodion-Equap. Ho insurance Expense 300 Prepaid Insurance 300 Suppies Expense 1.310 Suppries 1,310 SwW Expense 12300 sew Payoble 1280 Rent expense 400 Prepaid Rent 400 Interestexpenselnterestpayoble2424 2. Post to the ledger accounts. Notes Payable \begin{tabular}{l|ll} \hline & 7/1 & 4,800 \\ \hline & Boe. & 4,800 \end{tabular} Accounts Payable \begin{tabular}{ll|ll} \hlinen/18 & 400 & /2 & 1,600 \\ \hline & & Bal. & 1,200 \end{tabular} Accourts Receivable \begin{tabular}{lr|ll} \hline 9/10 & 2,960 & 7/4 & 1,280 \\ 9/28 & 3,360 & & \\ 9/31 & 400 & \\ \hline Bal. & 5,440 & \end{tabular} \begin{tabular}{l|ll} \hline & nil & 12,000 \\ \hline & Bal. & 12,000 \end{tabular} Serice Revenhe \begin{tabular}{l|cc} \multicolumn{3}{c}{ Service Revence } \\ \hline & n/10 & 2960 \\ & /28 & 3,360 \\ & n/31 & 4800 \\ \hline & B \end{tabular} \begin{tabular}{ll|l} \multicolumn{3}{c}{ Prepard Rent } \\ \hline/2 & 1200 & 400 \\ \hline Bol. & 800 & \end{tabular} Maintenance and Repairs Expense \begin{tabular}{cc|l} \hline/31 & 280 & \\ \hline Bal. & 280 & \end{tabular} \begin{tabular}{ll|l} \multicolumn{3}{c}{ Equicpment } \\ \hline III & 6.400 & \\ \hline Bol. & 6.400 & \end{tabular} Depreciation Expense Acc. Depreciation-Equipment \begin{tabular}{cc|l} \hline/31 & 260 & \\ \hline Bal. & 260 & \end{tabular} \begin{tabular}{l|ll} \hline & 7/31 & 260 \\ \hline & Dal & 260 \end{tabular} Insurance Expense \begin{tabular}{ll|l} \hline niri 300 & \\ \hline Bal. 300 & \end{tabular} Interest plyable \begin{tabular}{l|l|} \hline & 7/1.4I \\ \hline & Bol. 24 \end{tabular} Sparkiy Cleaners Adjusfed Trial Balance Juln, 31,2022 Dividends 720 Service Revenue 60120 Maintenance and Repairs Expense 280 Salaries and Wages Expense 280 Deprectation Expense Insurarle Expense Supplies Expense 300 Rent Expense Interest Expense Comprehensive Assignment Part III (19 points) - Due December 9th In Part III, we continue working on the Sparkly Cleaners' accounting records. Therefore, this document still contains the facts given in the Part I and II. In Part III, you will prepare the financial statements. (Part I) Shana Cameron opened Sparkly Cleaners on July 1, 2022. During July, the following transactions were completed. July 1 Issued 8,000 shares of common stock for $12,000 cash. 1 Borrowed $4,800 cash by signing a 6-month, 6\%, $4,800 note payable. Interest will be paid the first day of each subsequent month. 1 Purchased used truck for $6,400 cash. 2 Purchased cleaning supplies for $1,600 on account. 2 Paid $1,800 cash on a 6-month insurance policy effective July 1. 2 Paid $1,200 cash to cover rent from July 1 through September 30. 10 Billed customers $2,960 for cleaning services performed. 18 Paid $400 on amount owed on cleaning supplies. 20 Paid $1,400 cash for employee salaries. 21 Collected $1,280 cash from customers billed on July 10. 28 Billed customers $3,360 for cleaning services performed. 31 Paid $280 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a $720 cash dividend. The chart of accounts for Sparkly Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation - Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense. - Not all of the accounts will be used in Part I. 1. Journalize the July transactions. ( 13 points) 2. Post to the ledger accounts. ( 6 points) 3. Prepare a trial balance at July 31. (5 points) Part II 1. Journalize the following adjustments. (11 points) a. Services performed but unbilled and uncollected at July 31 was $400. b. Depreciation on equipment for the month was $260. c. One-sixth of the insurance expired. d. An inventory count shows $290 of cleaning supplies on hand at July 31 . e. Accrued but unpaid employee salaries were $1,380. f. One month of the prepaid rent has expired. g. One month of interest expense related to the note payable has accrued and will be paid August 1. 2. Post adjusting entries to the ledger accounts. ( 3 points) a. Again, you are continuing the Sparkly Cleaners' problem, so continue building on the general ledger you prepared in Part I. (If you post to an existing account, the balance should be re-calculated. If there is a new account in the adjusting entries, you will create a new T-account.) b. I have also uploaded the answer key to Part I on Canvas, so that you can fix any error you made in Part I (if any) before you post the adjusting entries. 3. Prepare an adjusted trial balance. (3 points) Part III 1. Prepare the income statement for July. ( 6 points) 2. Prepare a retained earnings statement for July. ( 3 points) 3. Prepare a classified balance sheet at July 31. (10 points)