P4-5A Heidi Jara opened Jara's Cleaning Service on July 1, 2017. During July, the follow- ing transactions were completed. July 1 Stockholders invested $20,000 cash in the business in exchange for common stock. 1 Purchased used truck for $9,000, paying $4,000 cash and the balance on account. 3 Purchased cleaning supplies for $2,100 on account. 5 Paid $1,800 cash on a 1-year insurance policy effective July 1. 12 Billed customers $4,500 for cleaning services. 18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies. 20 Paid $2,500 cash for employee salaries. 21 Collected $3,400 cash from customers billed on July 12. 25 Billed customers $6,000 for cleaning services. 31 Paid $350 for the monthly gasoline bill for the truck. 31 Paid a $5,600 cash dividend. The chart of accounts for Jara's 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 Depreciation Equipment, 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. Instructions (a) Journalize and post the July transactions. Use page J1 for the journal and the three- column form of account. (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 and uncollected revenue for services performed at July 31 were $2,700. (2) Depreciation on equipment for the month was $500. (3) One-twelfth of the insurance expired. (4) An inventory count shows $600 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $1,000. (d) Prepare an income statement and a retained earnings statement for July and a classi- fied balance sheet at July 31. (e) Journalize and post adjusting entries. Use page J2 for the journal. (f) Journalize and post closing entries and complete the closing process. Use page J3 for the journal. (g) Prepare a post-closing trial balance at July 31. (d JARA'S CLEANING SERVICE Worksheet For the Month Ended July 31, 2017 Account Titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit - 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 af -- a,ef Explanation Debit No. 101 Balance Credit 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 Cash Date 7/1/17 7/1/17 7/5/17 7/18/17 7/20/17 7/21/17 7/31/17 7/31/17 Ref. J1 J1 J1 J1 J1 J1 J1 J1 Debit Credit No. 112 Balance Accounts Receivable Date Explanation 7/12/17 7/21/17 7/25/17 7/31/17 Adjusting 87 88 89 Ref. JI J1 J1 J2 90 91 92 93 94 95 96 97 98 99 100 101 102 103 Supplies Date Explanation 7/3/17 7/31/17 Adjusting Debit Credit No. 128 Balance Ref. J1 J2 No. 130 Balance Debit Credit Prepaid Insurance Date Explanation 7/5/17 7/31/17 Adjusting Ref. J1 J2 Equipment Date Explanation 7/1/17 Debit Ref. J1 No. 157 Balance Credit Accumulated Depreciation-Equipment Date Explanation Ref. 7/31/17 Adjusting J2 Debit No. 158 Balance Credit Accounts Payable Date Explanation 7/1/17 7/3/17 7/18/17 Debit Credit No. 201 Balance Ref. J1 J1 JI BE 4-1 E 4-1 Sheet3 + Salaries and Wages Payable Date Explanation 7/31/17 Adjusting No. 212 Balance Debit Credit Ref. J2 Common Stock Date Explanation 7/1/17 No. 311 Balance Debit Credit Ref. J1 Debit Retained Earnings Date Explanation 7/1/17 7/31/17 Closing 7/31/17 Closing Ref. J1 Credit No. 320 Balance J3 J3 Dividends Date Explanation 7/31/17 7/31/17 Closing Debit Credit Ref. J1 J3 No. 332 Balance BE 4-1 E 4-1 Sheet3 No. 350 Balance Debit Credit Income Summary Date Explanation 7/31/17 Closing 7/31/17 Closing 7/31/17 Closing Ref. J3 J3 J3 No. 400 Balance Debit Credit Service Revenue Date Explanation 7/12/17 7/25/17 7/31/17 Adjusting 7/31/17 Closing Ref. J1 J1 J2 J3 Gasoline Expense Date Explanation 7/31/17 7/31/17 Closing Ref. Debit Credit No. 633 Balance J1 J3 Supplies Expense Date Explanation 7/31/17 Adjusting 7/31/17 Closing Debit No. 634 Balance Credit Ref. J2 J3 9 n BE 4-1 E 4-1 2 E Debit Credit Balance A B Date Explanation 7/31/17 Adjusting 7/31/17 Closing C Ref. J2 J3 Depreciation Expense Date Explanation 7/31/17 Adjusting 7/31/17 Closing No. 711 Balance Debit Credit Ref. J2 J3 Insurance Expense Date Explanation 7/31/17 Adjusting 7/31/17 Closing Debit Credit No. 722 Balance Ref. J2 J3 Salaries and Wages Expense Date Explanation 7/20/17 7/31/17 Adjusting 7/31/17 Closing Debit 3 4 5 6 7 18 19 50 51 Credit No. 726 Balance Ref. JI J2 J3