Please complete G & H Thank You!

CS-1 LO 1 2 3 4

Grindstone Paving provides residential and commercial paving services. Its balance sheet at the end of June 2018 is shown below, along with its chart of accounts.

	Grindstone Paving Balance Sheet As at June 30, 2018
Assets		Liabilities
Cash	$7,580	Accounts Payable $15,800
Accounts Receivable	6,000	Unearned Revenue 6,200
Prepaid Insurance	1,800	Notes Payable 22,000
Equipment	55,000	Total Liabilities 44,000
		Owner's Equity
		Stone, Capital 26,380
Total Assets	$70,380	Total Liabilities and Owner's Equity $70,380

Account Description

Account #

Account Description

Account #

ASSETS
Cash	101
Accounts Receivable	105
Prepaid Insurance	110
Equipment	120
Accumulated Depreciation-Equipment	125

LIABILITIES
Accounts Payable	200
Interest Payable	205
Salary Payable	210
Unearned Revenue	215
Notes Payable	220

REVENUE

Service Revenue

400

EXPENSES
Advertising Expense	500
Depreciation Expense	510
Insurance Expense	515
Interest Expense	520
Salaries Expense	545
Telephone Expense	550

OWNER'S EQUITY

Stone, Withdrawals

310

Income Summary

315

Stone, Capital

300

For the month of July 2018, Grindstone Paving had the following transactions.

Jul 1 The owner invested $8,000 cash into the business

Jul 2 Received $2,530 cash for work that will be provided in August

Jul 5 Received an advertising bill for $600, which will be paid next month

Jul 8 Paid the $350 telephone bill with cash

Jul 10 Provided $4,680 worth of services to customers who will pay later

Jul 14 Purchased equipment with $8,200 cash

Jul 20 Received $2,350 in payment from customers paying their accounts

Jul 22 Paid $1,970 toward accounts payable

Jul 24 Paid $1,300 toward principal of the note payable

Jul 28 Paid salary of $2,400 to an employee

Jul 30 The owner withdrew $2,200 cash for personal use

At the end of July, the following adjustments had to be journalized to properly report the balances of the companys accounts.

Jul 31 One month of prepaid insurance worth $100 has been used

Jul 31 Monthly depreciation on the equipment was $450

Jul 31 Unearned revenue worth $620 has now been earned

Jul 31 Interest of $75 has accrued on the of the note payable

Jul 31 Accrued salary expense of $500 for an employee

Note: Of the remaining balance of the note payable, $5,000 will be paid within the next year. Required

g) Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts.

h) Prepare the journal entries to close the books for the months of July 2018 (use the income summary account), and post the journal entries to the appropriate general ledger accounts, which start on the next page.