July 1 CP4 Kristin Malone opened Kristin's Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions. 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 Equip- ment, 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. (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 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. (5) 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, 2017 (e) Journalize and post the adjusting entries. Use page J2 for the journal. (1) Journalize and post the closing entries, and complete the closing process. (8) Prepare a post-closing trial balance at July 31. (a) General Journal Date Account Titles and Explanation Debit Credit July 1 1 3 5 12 18 20 21 25 31 31 Cash Date Debit Credit Balance July 1 14,000 14,000 1 1 5 18 20 21 31 31 Accounts Receivable Date Debit Credit Balance July 12 21 25 Adj Supplies Date Debit Credit Balance July 3 Adj Prepaid Insurance Date Debit Credit Balance July 5 Adj Equipment Date Debit Credit Balance July 1 Accumulated Depreciation - Equipment Date Debit Credit Balance Adj Accounts Payable Date Debit Credit Balance July 1 3 18 Salaries and Wages Payable Date Debit Credit Balance Adj Common Stock Date Debit Credit Balance July 1 14,000 14,000 Retained Earnings Date Debit Credit Balance Clo Clo Dividends Date Debit Credit Balance July 31 Clo Income Summary Date Debit Credit Balance Clo Clo Clo Service Revenue Date Debit Credit Balance July 12 25 Adj Clo Supplies Expense Date Debit Credit Balance Adj Clo Gasoline Expense Date Debit Credit Balance July 31 Clo Depreciation Expense Date Debit Credit Balance Ad) Clo Insurance Expense Date Debit Credit Balance Adj Clo Salaries and Wages Expense Date Debit Credit Balance July 20 Adj Clo Instructors Note: I completed instruction (b) as well as provided column totals to help you get things correct. (Think about it - the Trial Bal amounts (below) are the correct ending balances for each account which, if you did the journal entries correct, should agree with your account balances. If not - you have entr y(s) wrong.) Kristen's Maid Cleaning Worksheet For the Month Ended July 31, 2017 Trial Balance Adjustments Income Statement Account Title Balance Sheet Debit Crodit Debit Credit Debit Credit Debit Credit 6,600 Cash Accts Recble Supplies Prepaid Ins. Equipment Acets Payable Common Stock Dividends Service Revenue Gasoline Expense Sal & Wage Expense Totals 25,700 25,700 Depreciation Exp Ace Dept - Equip Insurance Expense Supplies Expense Sal & Wages Pyble Totals Net Income Totals 2,850 2,850 6,600 6,600 24,150 24,150 Instructors Note: Trial Balance columns should equal as should the adjustment columns (VERIFY). However, debit & credit columns of the income statement, AND balance sheet columns, will NOT be equal until you "plug in the net income (Rev - Exp) Note that each account will appear in EITHER the Income Statement cols. OR the balance sheet cols. - NOT BOTH. (Make sure that you combine Trial Balance amounts with the Adjustment amounts to determine the correct amounts that go to the financial statement columns BEFORE CLOSING postings mit einer home Instruction (d) ... (part 1) prepare an Income Statement Id Instruction (d) ... (part 1) prepare an Income Statement (d) Kristin's Maid Cleaning Service Income Statement For the Month Ended July 31, 2017 Revenues: Expenses: Total Expenses Net Income 3,050 Completed for you (you may need an amount from it for the CLASSIFIED Balance Shee Kristin's Maids Cleaning Service Statement of Changes in Stockholders Equity For the Month Ended, July 31 Retained Earnings, July 1 (beginning) 0 Add: Net Income 3,050 3,050 Less: Dividends 600 Retained Earnings, July 31 (ending) 2,450 Instruction (d) (part 2) ... prepare a CLASSIFIED Balance Sheet Kristin's Maids Cleaning Service Balance Sheet July 31, 2017 Assets Current Assets: Total Current Assets Property Plant and Equipment: Total Assets 23,350 Liabilities and Stockholders' Equity Current Liabilities: Total Current Liabilities Stockholders Equity: Total Liab. & Stckhldrs' Equity 23,350 Instruction (e) ... Journalize and Post Adjusting Entries Date Account Titles and Explanation Debit Credit July 31 (1) July 31 2) July 31 (3) July 31 July 31 (5) Instruction (1) ... Journalize and Post Closing Entries Date Account Titles and Explanation Debit Credit July 31 July 31 (2) July 31 (3) July 31