July

1

Invested personal money of $14,000 into the new company bank account

1

Purchased a used van 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 one-year insurance policy, effective July 1.

12

Billed customer $3,800 for cleaning services.

18

Paid $1,000 of the amount owed on the van, and $400 of the 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 gas and oil for the month on the van, $400

31

Paid herself $600 for personal use.

(a)

Journalize the above entries for July. Use page J1 for the journal.

(b)

Post the entries to the ledger accounts

c)

Prepare a trial balance at July 31 on a worksheet

(d)

Enter the following adustments on the worksheet, and complete the worksheet.

1. Earned but unbilled fees at July 31 were $1,300

2. Depreciation on equipment for the month was $200

3. One month 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

(e)

Prepare the income statement and a statement of owner's equity for July

(f)

Prepare a classified balance sheet for July 31, 2014

(g)

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

(h)

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

(i)

Prepare a post-closing trial balance at July 31.

Prepare Income and Statement of Owners' Equity, and a Balance Sheet
		Barbara's Cleaning Service
		Income Statement
		For the Month Ended July 31, 2018
Revenues
Expenses
		Total expenses
Net income
	Barbara's Cleaning Service
		Statement of Owner's Equity
		For the Month Ended July 31, 2018
Barbara, Capital, July 1
Add: Investment by owner
Add: Net Income
Less: Withdrawals
Barbara, Capital, July 31
		BARBARA'S CLEANING SERVICE
		Balance Sheet
		July 31, 2018
Assets
Current assets
	Less: Accumulated depreciation
		Total assets
Liabilities and Owners Equity
Current liabilities
		Total liabilities			-
Owners equity
	Barbara, Capital
		Total liabilities and Owners equity
		Assets = Liabilities + Owner's Equity