Question
Kristin Malone opened Kristins Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions. July 1 Stockholders invested $19,000 cash
Kristin Malone opened Kristins Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions.
July | 1 |
| Stockholders invested $19,000 cash in the business in exchange for common stock. |
| 1 |
| Purchased a used truck for $11,000, paying $2,900 cash and the balance on account. |
| 3 |
| Purchased cleaning supplies for $900 on account. |
| 5 |
| Paid $2,208 on a 1-year insurance policy, effective July 1. |
| 12 |
| Billed customers $3,500 for cleaning services. |
| 18 |
| Paid $1,300 of amount owed on truck, and $260 of amount owed on cleaning supplies. |
| 20 |
| Paid $1,500 for employee salaries. |
| 21 |
| Collected $1,800 from customers billed on July 12. |
| 25 |
| Billed customers $1,800 for cleaning services. |
| 31 |
| Paid gasoline for the month on the truck, $400. |
| 31 |
| Declared and paid a $700 cash dividend. |
(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 $250. |
|
| (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 $600. |
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