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Lee Davis opened Pharoah's Window Washing on July 1, 2024. In July, the following transactions were completed: July 1 Invested $26,000 cash in the business.
Lee Davis opened Pharoah's Window Washing on July 1, 2024. In July, the following transactions were completed:
July 1 | Invested $26,000 cash in the business. | |
1 | Purchased a used truck for $34,020, paying $8,020 cash and signing a note payable for the balance. | |
1 | Paid $3,360 on a one-year insurance policy, effective July 1. | |
5 | Billed customers $3,900 for cleaning services. | |
12 | Purchased supplies for $2,700 on account. | |
18 | Paid $3,600 for employee salaries. | |
25 | Billed customers $11,900 for cleaning services. | |
28 | Collected $3,900 from customers billed on July 5. | |
31 | Paid $1,150 for repairs on the truck. | |
31 | Withdrew $3,200 cash for personal use. |
Adjustment:
1. | Services of $2,100 were provided but remained unbilled and uncollected at July 31. | |
2. | The truck has an estimated useful life of five years. | |
3. | One-twelfth of the insurance expired. | |
4. | An inventory count shows $1,000 of supplies on hand at July 31. | |
5. | Accrued but unpaid employee salaries were $1,100. | |
6. | The note payable has a 6.0% annual interest rate. |
Prepare an adjusted trial balance.
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