Lee Chang opened Lee's Window Washing on July 1, 2017. In July, the following transactions were completed:

July1Invested $20,000 cash in the business.1Purchased a used truck for $25,000, paying $5,000 cash and signing a note payable for the balance.1Paid $2,800 on a one-year insurance policy, effective July 1.5Billed customers $3,300 for cleaning services.12Purchased supplies for $2,100 on account.18Paid $3,000 for employee salaries.25Billed customers $8,900 for cleaning services.28Collected $3,300 from customers billed on July 5.31Paid $550 for fuel for the month on the truck.31Withdrew $2,600 cash for personal use.

Instructions (a)

Make and put the July transactions to the general ledger.

(b)

Make a trial balance at July 31.

(c)

Make and put the following July 31 adjustments:

• 1.Earned but unbilled fees at July 31 were $1,500.
• 2.The truck has an estimated useful life of five years.
• 3.One twelfth of the insurance expired.
• 4.An inventory count shows $700 of supplies on hand at July 31.
• 5.Accrued but unpaid employee salaries were $800.
• 6.The note payable has a 5.5% annual interest rate.

(d)

Make an adjusted trial balance.

(e)

Make the income statement and statement of owner's equity for July, and a classified balance sheet at July 31, 2017. Of the note payable, $5,000 must be paid by June 30, 2018.

(f)

Make and put the closing entries.

(g)

Make a passed-closing trial balance at July 31.