Kristin Malone opened Kristins Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions.

July 1 Stockholders invested $16,000 cash in the business in exchange for common stock. 1 Purchased a used truck for $10,000, paying $3,200 cash and the balance on account. 3 Purchased cleaning supplies for $700 on account. 5 Paid $2,280 on a 1-year insurance policy, effective July 1. 12 Billed customers $3,500 for cleaning services. 18 Paid $1,100 of amount owed on truck, and $270 of amount owed on cleaning supplies. 20 Paid $1,700 for employee salaries. 21 Collected $1,500 from customers billed on July 12. 25 Billed customers $1,800 for cleaning services. 31 Paid gasoline for the month on the truck, $500. 31 Declared and paid a $600 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 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 (To record cash invested in the business.) July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 (To record purchase of truck.) July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 (To record gasoline expense.) July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 (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 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Accounts Receivable No. 112 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Supplies No. 126 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Equipment No. 157 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Common Stock No. 311 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Dividends No. 332 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Service Revenue No. 400 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Gasoline Expense No. 633 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 J1 Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 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 $1,300. (2) Depreciation on equipment for the month was $210. (3) One-twelfth of the insurance expired. (4) An inventory count shows $300 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $400.

KRISTINS MAIDS CLEANING SERVICE Worksheet July 31, 2017 For the Quarter Ended July 31, 2017 For the Month Ended July 31, 2017 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 For the Quarter Ended July 31, 2017 July 31, 2017 For the Month Ended July 31, 2017 Dividends Expenses Investment Net Income / (Loss) Retained Earnings, July 1 Retained Earnings, July 31 Revenues Total Expenses Total Revenues $ Dividends Expenses Investment Net Income / (Loss) Retained Earnings, July 1 Retained Earnings, July 31 Revenues Total Expenses Total Revenues $ Dividends Expenses Investment Net Income / (Loss) Retained Earnings, July 1 Retained Earnings, July 31 Revenues Total Expenses Total Revenues Dividends Expenses Investment Net Income / (Loss) Retained Earnings, July 1 Retained Earnings, July 31 Revenues Total Expenses Total Revenues $

Prepare the retained earnings statement for July 31, 2017. (List items that will increase retained earnings first.)

KRISTINS MAIDS CLEANING SERVICE Retained Earnings Statement For the Month Ended July 31, 2017 July 31, 2017 For the Quarter Ended July 31, 2017 Dividends Expenses Investment Net Income / (Loss) Retained Earnings, July 1 Retained Earnings, July 31 Revenues Total Expenses Total Revenues $ Add Less : Dividends Expenses Investment Net Income / (Loss) Retained Earnings, July 1 Retained Earnings, July 31 Revenues Total Expenses Total Revenues Add Less : Dividends Expenses Investment Net Income / (Loss) Retained Earnings, July 1 Retained Earnings, July 31 Revenues Total Expenses Total Revenues Dividends Expenses Investment Net Income / (Loss) Retained Earnings, July 1 Retained Earnings, July 31 Revenues Total Expenses Total Revenues $

Prepare a classified balance sheet at July 31, 2017. (List current assets in order of liquidity.)

KRISTINS MAIDS CLEANING SERVICE Balance Sheet For the Quarter Ended July 31, 2017 July 31, 2017 For the Month Ended July 31, 2017 Assets Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity $ Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity $ Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity Add Less : Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity $ Liabilities and Stockholders' Equity Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity $ Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity $ Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total 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 16,000 16,000 July 1 J1 3,200 12,800 July 5 J1 2,280 10,520 July 18 J1 1,370 9,150 July 20 J1 1,700 7,450 July 21 J1 1,500 8,950 July 31 J1 500 8,450 July 31 J1 600 7,850 Accounts Receivable No. 112 Date Explanation Ref Debit Credit Balance July 12 J1 3,500 3,500 July 21 J1 1,500 2,000 July 25 J1 1,800 3,800 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Adjusting J2 Supplies No. 126 Date Explanation Ref Debit Credit Balance July 3 J1 700 700 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Adjusting J2 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance July 5 J1 2,280 2,280 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 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 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Adjusting J2 Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance July 1 J1 6,800 6,800 July 3 J1 700 7,500 July 18 J1 1,370 6,130 Salaries and Wages Payable No. 212 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Adjusting J2 Common Stock No. 311 Date Explanation Ref Debit Credit Balance July 1 J1 16,000 16,000 Dividends No. 332 Date Explanation Ref Debit Credit Balance July 31 J1 600 600 Service Revenue No. 400 Date Explanation Ref Debit Credit Balance July 12 J1 3,500 3,500 July 25 J1 1,800 5,300 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Adjusting J2 Gasoline Expense No. 633 Date Explanation Ref Debit Credit Balance July 31 J1 500 500 Supplies Expense No. 634 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Adjusting J2 Depreciation Expense No. 711 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Adjusting J2 Insurance Expense No. 722 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Adjusting J2 Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance July 20 J1 1,700 1,700 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 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 16,000 16,000 July 1 J1 3,200 12,800 July 5 J1 2,280 10,520 July 18 J1 1,370 9,150 July 20 J1 1,700 7,450 July 21 J1 1,500 8,950 July 31 J1 500 8,450 July 31 J1 600 7,850 Accounts Receivable No. 112 Date Explanation Ref Debit Credit Balance July 12 J1 3,500 3,500 July 21 J1 1,500 2,000 July 25 J1 1,800 3,800 July 31 Adjusting J2 1,300 5,100 Supplies No. 126 Date Explanation Ref Debit Credit Balance July 3 J1 700 700 July 31 Adjusting J2 400 300 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance July 5 J1 2,280 2,280 July 31 Adjusting J2 190 2,090 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 210 210 Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance July 1 J1 6,800 6,800 July 3 J1 700 7,500 July 18 J1 1,370 6,130 Salaries and Wages Payable No. 212 Date Explanation Ref Debit Credit Balance July 31 Adjusting J2 400 400 Common Stock No. 311 Date Explanation Ref Debit Credit Balance July 1 J1 16,000 16,000 Retained Earnings No. 320 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 Dividends No. 332 Date Explanation Ref Debit Credit Balance July 31 J1 600 600 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 Income Summary No. 350 Date Explanation Ref Debit Credit Balance July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 Service Revenue No. 400 Date Explanation Ref Debit Credit Balance July 12 J1 3,500 3,500 July 25 J1 1,800 5,300 July 31 Adjusting J2 1,300 6,600 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 Gasoline Expense No. 633 Date Explanation Ref Debit Credit Balance July 31 J1 500 500 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 Supplies Expense No. 634 Date Explanation Ref Debit Credit Balance July 31 Adjusting J2 400 400 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 Depreciation Expense No. 711 Date Explanation Ref Debit Credit Balance July 31 Adjusting J2 210 210 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 Insurance Expense No. 722 Date Explanation Ref Debit Credit Balance July 31 Adjusting J2 190 190 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3 Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance July 20 J1 1,700 1,700 July 31 Adjusting J2 400 2,100 July 1 July 3 July 5 July 12 July 18 July 20 July 21 July 25 July 31 Closing J3

Prepare a post-closing trial balance at July 31.

KRISTINS MAIDS CLEANING SERVICE Post-Closing Trial Balance July 31, 2017 For the Quarter Ended July 31, 2017 For the Month Ended July 31, 2017 Debit Credit $ $ Totals $ $