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LeeChangopenedLee'sWindowWashingonJuly1,2014.InJuly,thefolowing transactionswerecompleted: July1 Leeinvested$20,000cashinthebusiness. 1Purchasedausedtruckfor$25,000,paying$5,000cashandsigning anotepayableforthebalance. 3Purchasedsuppliesfor$2,100onaccount. 5Paid$1,800onaone-yearinsurancepolicy,efectiveJuly1. 12Biledcustomers$4,500forcleaningservices. 18Paid$1,400ofamountowedonsupplies. 20Paid$2,000foremployeesalaries. 2 1 C o l le c te d $ 3 ,4 0 0
LeeChangopenedLee'sWindowWashingonJuly1,2014.InJuly,thefolowing transactionswerecompleted: July1 Leeinvested$20,000cashinthebusiness. 1Purchasedausedtruckfor$25,000,paying$5,000cashandsigning anotepayableforthebalance. 3Purchasedsuppliesfor$2,100onaccount. 5Paid$1,800onaone-yearinsurancepolicy,efectiveJuly1. 12Biledcustomers$4,500forcleaningservices. 18Paid$1,400ofamountowedonsupplies. 20Paid$2,000foremployeesalaries. 2 1 C o l le c te d $ 3 ,4 0 0 fro m c u s to m e rs b il le d o n J u ly 1 2 . 25Biledcustomers$9,000forcleaningservices. 31Paid$550forfuelforthemonthonthetruck. 31Withdrew$1,600cashforpersonaluse. Instructions (a)JournalizeandposttheJulytransactions. (b)PrepareatrialbalanceatJuly31. (c)Journalizeandpostthefolowingadjustments: 1. EarnedbutunbiledfeesatJuly31was$1,500. 2. Thetruckhasanestimatedusefulifeoffouryears. 3. One-twelfthoftheinsuranceexpired. 4. Aninventorycountshows$700ofsuppliesonhandatJuly31. 5. Accruedbutunpaidemployeesalarieswere$800. 6. Thenotepayablehasa5.5%annualinterestrate. (d)Prepareanadjustedtrialbalance. (e)Preparetheincomestatementandstatementofowner'sequityforJuly,anda classifiedbalancesheetatJuly31,2014.Ofthenotepayable,$5,000mustbe paidbyJuly1,2015. (f)Journalizeandposttheclosingentries. (g)Prepareapost-closingtrialbalanceatJuly31.
LeeChangopenedLee'sWindowWashingonJuly1,2014.InJuly,thefolowing transactionswerecompleted:
July1 Leeinvested$20,000cashinthebusiness. 1Purchasedausedtruckfor$25,000,paying$5,000cashandsigning
anotepayableforthebalance. 3Purchasedsuppliesfor$2,100onaccount. 5Paid$1,800onaone-yearinsurancepolicy,efectiveJuly1.
12Biledcustomers$4,500forcleaningservices. 18Paid$1,400ofamountowedonsupplies. 20Paid$2,000foremployeesalaries.
2 1 C o l le c te d $ 3 ,4 0 0 fro m c u s to m e rs b il le d o n J u ly 1 2 . 25Biledcustomers$9,000forcleaningservices. 31Paid$550forfuelforthemonthonthetruck. 31Withdrew$1,600cashforpersonaluse.
Instructions (a)JournalizeandposttheJulytransactions.
(b)PrepareatrialbalanceatJuly31. (c)Journalizeandpostthefolowingadjustments:
1. EarnedbutunbiledfeesatJuly31was$1,500.
2. Thetruckhasanestimatedusefulifeoffouryears.
3. One-twelfthoftheinsuranceexpired.
4. Aninventorycountshows$700ofsuppliesonhandatJuly31. 5. Accruedbutunpaidemployeesalarieswere$800.
6. Thenotepayablehasa5.5%annualinterestrate.
(d)Prepareanadjustedtrialbalance.
(e)Preparetheincomestatementandstatementofowner'sequityforJuly,anda classifiedbalancesheetatJuly31,2014.Ofthenotepayable,$5,000mustbe paidbyJuly1,2015.
(f)Journalizeandposttheclosingentries. (g)Prepareapost-closingtrialbalanceatJuly31.
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