Incorporate the following Modifications:
P4.5 (LO 1, 2, 4) Anya Clark opened Anyas Cleaning Service on July 1, 2020. During July, the follow- ing transactions were completed. July 1 Shareholders invested 20,000 cash in the business in exchange for ordinary shares. 1 Purchased used truck for 12,000, 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 2,800 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 Declared and paid a 5,600 cash dividend. The chart of accounts for Anya'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 Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Share CapitalOrdinary, 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 Jl 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 the income statement and a retained earnings statement for July and a classified statement of financial position 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. . . . Ignore GST and income taxes. Use $ instead of Euro. Narrations in the journal are not required, but cross-referencing in both the journal and ledger is required. Add the following event for 1 July: borrowed $10,000 from the bank at a 6% annual interest rate; the loan is due in 15 months, but the interest is payable quarterly. For this event, add the following accounts to the general ledger: No. 600 Interest Expense; No. 220 Interest Payable; and No. 230 Loan Payable. A worksheet is not required, but a trial balance, an adjusted trial balance, and a post- closing trial balance are required. For Instruction e., you also should consider if the loan discussed above requires an AJE, and if it does, include the AJE with the others required by Instruction e. Also for Instruction e., add the following event: The bank informs the business that interest revenue of $30 for July will be credited to the company's bank account on 1 August. For this event, add the following accounts, if necessary, to the general ledger: No. 115 Interest Receivable and No. 410 Interest Revenue. For Instruction d., prepare a Statement of Comprehensive Income and a Balance Sheet in the form and format required in this course. You do not have to prepare a separate Statement of Retained Earnings. Prepare a residual analysis, including accounts debited and credited, to explain the AJE required for the data contained in Instruction c. 5. (the employees' salaries data)
