Kristin Malone opened Kristins Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions. July 1 Stockholders invested $17,000 cash in the business in exchange for common stock. 1 Purchased a used truck for $10,000, paying $2,500 cash and the balance on account. 3 Purchased cleaning supplies for $900 on account. 5 Paid $2,232 on a 1-year insurance policy, effective July 1. 12 Billed customers $3,500 for cleaning services. 18 Paid $1,200 of amount owed on truck, and $250 of amount owed on cleaning supplies. 20 Paid $1,600 for employee salaries. 21 Collected $1,800 from customers billed on July 12. 25 Billed customers $1,600 for cleaning services. 31 Paid gasoline for the month on the truck, $300. 31 Declared and paid a $700 cash dividend. The chart of accounts for Kristins Maids 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 DepreciationEquipment, 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. Journalize the July transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record cash invested in the business.) (To record purchase of truck.) (To record gasoline expense.) (To record dividend.) Post the July transactions. (Post entries in the order of journal entries presented above.) Cash No. 101 Date Explanation Ref Debit Credit Balance J1 J1 J1 J1 J1 J1 J1 J1 Accounts Receivable No. 112 Date Explanation Ref Debit Credit Balance J1 J1 J1 Supplies No. 126 Date Explanation Ref Debit Credit Balance J1 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance J1 Equipment No. 157 Date Explanation Ref Debit Credit Balance J1 Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance J1 J1 J1 Common Stock No. 311 Date Explanation Ref Debit Credit Balance J1 Dividends No. 332 Date Explanation Ref Debit Credit Balance J1 Service Revenue No. 400 Date Explanation Ref Debit Credit Balance J1 J1 Gasoline Expense No. 633 Date Explanation Ref Debit Credit Balance J1 Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance J1 (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 $1,200. (2) Depreciation on equipment for the month was $260. (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. KRISTINS MAIDS CLEANING SERVICE Worksheet Account Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Common Stock Dividends Service Revenue Gasoline Expense Salaries and Wages Expense Totals Depreciation Expense Accum. Depr.Equipment Insurance Expense Supplies Expense Salaries and Wages Payable Totals Net Income Totals Prepare the income statement for July 31, 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) KRISTINS MAIDS CLEANING SERVICE Income Statement $ $ $ Prepare the retained earnings statement for July 31, 2017. (List items that will increase retained earnings first.) KRISTINS MAIDS CLEANING SERVICE Retained Earnings Statement $ : : $ Prepare a classified balance sheet at July 31, 2017. (List current assets in order of liquidity.) KRISTINS MAIDS CLEANING SERVICE Balance Sheet Assets $ $ : $ Liabilities and Stockholders' Equity $ $ $ Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. Post the adjusting entries. (Post entries in the order of journal entries passed above.) Cash No. 101 Date Explanation Ref Debit Credit Balance July 1 J1 17,000 17,000 July 1 J1 2,500 14,500 July 5 J1 2,232 12,268 July 18 J1 1,450 10,818 July 20 J1 1,600 9,218 July 21 J1 1,800 11,018 July 31 J1 300 10,718 July 31 J1 700 10,018 Accounts Receivable No. 112 Date Explanation Ref Debit Credit Balance July 12 J1 3,500 3,500 July 21 J1 1,800 1,700 July 25 J1 1,600 3,300 Adjusting J2 Supplies No. 126 Date Explanation Ref Debit Credit Balance July 3 J1 900 900 Adjusting J2 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance July 5 J1 2,232 2,232 Adjusting J2 Equipment No. 157 Date Explanation Ref Debit Credit Balance July 1 J1 10,000 10,000 Accumulated DepreciationEquipment No. 158 Date Explanation Ref Debit Credit Balance Adjusting J2 Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance July 1 J1 7,500 7,500 July 3 J1 900 8,400 July 18 J1 1,450 6,950 Salaries and Wages Payable No. 212 Date Explanation Ref Debit Credit Balance Adjusting J2 Common Stock No. 311 Date Explanation Ref Debit Credit Balance July 1 J1 17,000 17,000 Dividends No. 332 Date Explanation Ref Debit Credit Balance July 31 J1 700 700 Service Revenue No. 400 Date Explanation Ref Debit Credit Balance July 12 J1 3,500 3,500 July 25 J1 1,600 5,100 Adjusting J2 Gasoline Expense No. 633 Date Explanation Ref Debit Credit Balance July 31 J1 300 300 Supplies Expense No. 634 Date Explanation Ref Debit Credit Balance Adjusting J2 Depreciation Expense No. 711 Date Explanation Ref Debit Credit Balance Adjusting J2 Insurance Expense No. 722 Date Explanation Ref Debit Credit Balance Adjusting J2 Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance July 20 J1 1,600 1,600 Adjusting J2 Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To close revenue account.) (To close expense accounts.) (To close net income / (loss).) (To close dividends.) Post the closing entries and complete the closing process. (Post entries in the order of journal entries presented above.) Cash No. 101 Date Explanation Ref Debit Credit Balance July 1 J1 17,000 17,000 July 1 J1 2,500 14,500 July 5 J1 2,232 12,268 July 18 J1 1,450 10,818 July 20 J1 1,600 9,218 July 21 J1 1,800 11,018 July 31 J1 300 10,718 July 31 J1 700 10,018 Accounts Receivable No. 112 Date Explanation Ref Debit Credit Balance July 12 J1 3,500 3,500 July 21 J1 1,800 1,700 July 25 J1 1,600 3,300 July 31 Adjusting J2 1,200 4,500 Supplies No. 126 Date Explanation Ref Debit Credit Balance July 3 J1 900 900 July 31 Adjusting J2 800 100 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance July 5 J1 2,232 2,232 July 31 Adjusting J2 186 2,046 Equipment No. 157 Date Explanation Ref Debit Credit Balance July 1 J1 10,000 10,000 Accumulated DepreciationEquipment No. 158 Date Explanation Ref Debit Credit Balance July 31 Adjusting J2 260 260 Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance July 1 J1 7,500 7,500 July 3 J1 900 8,400 July 18 J1 1,450 6,950 Salaries and Wages Payable No. 212 Date Explanation Ref Debit Credit Balance July 31 Adjusting J2 600 600 Common Stock No. 311 Date Explanation Ref Debit Credit Balance July 1 J1 17,000 17,000 Retained Earnings No. 320 Date Explanation Ref Debit Credit Balance Closing J3 Closing J3 Dividends No. 332 Date Explanation Ref Debit Credit Balance July 31 J1 700 700 Closing J3 Income Summary No. 350 Date Explanation Ref Debit Credit Balance Closing J3 Closing J3 Closing J3 Service Revenue No. 400 Date Explanation Ref Debit Credit Balance July 12 J1 3,500 3,500 July 25 J1 1,600 5,100 July 31 Adjusting J2 1,200 6,300 Closing J3 Gasoline Expense No. 633 Date Explanation Ref Debit Credit Balance July 31 J1 300 300 Closing J3 Supplies Expense No. 634 Date Explanation Ref Debit Credit Balance July 31 Adjusting J2 800 800 Closing J3 Depreciation Expense No. 711 Date Explanation Ref Debit Credit Balance July 31 Adjusting J2 260 260 Closing J3 Insurance Expense No. 722 Date Explanation Ref Debit Credit Balance July 31 Adjusting J2 186 186 Closing J3 Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance July 20 J1 1,600 1,600 July 31 Adjusting J2 600 2,200 Closing J3 Prepare a post-closing trial balance at July 31. KRISTINS MAIDS CLEANING SERVICE Post-Closing Trial Balance Debit Credit $ $ Totals $ $