Question
Mary Coleman opened Marys Maids Cleaning Service on July 1, 2014. During July the following transactions were completed. July 1; Shareholders invested $20,000 cash in
Mary Coleman opened Mary’s Maids Cleaning Service on July 1, 2014. During July the following transactions were completed. July 1; Shareholders invested $20,000 cash in the business in exchange for ordinary Shares. July 1; Purchased used truck for $12,000, paying $4,000 cash and the balance on account. July 3; purchase cleaning supplies for $2,100 on account. July 5; Paid $1,800 cash on one-year insurance policy started from July 1. July 12; billed customers $5,900 for cleaning services July 18; Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies. July 20; Paid $4,500 cash for employee salaries July 21; collected $4,400 cash from customers billed on July 12 July 25; billed customers $8,000 for cleaning services July 31; paid $350 for the monthly gasoline bill for the truck July 31; declared and paid a $1,200 cash dividend Instructions; Journalize and post the July transactions. Prepare necessary Ledger Accounts. Prepare a Trial Balance as of July 31 Journalize the following adjustments and prepare an adjusted Trial Balance: Services provided but unbilled and uncollected at July 31 were $3,300. Depreciation on equipment for the month was $500. One-twelfth of the insurance expired. An inventory count shows $600 of cleaning supplies on hand at July 31. Accrued but unpaid employee salaries were $2,200.
requirement :
Prepare an income statement, a statement of retained earnings,
Statement of financial position.
Prepare a post-closing trial balance.
Step by Step Solution
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Step: 1
Here are the journal entries and ledger accounts for Marys Maids Cleaning Service for the month of July 2014 Journal Entries July 1 2014 Share CapitalDr 20000 CashCr 20000 Shareholders invested 20000 ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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