Problem 4-05A a-g Heidi Jara opened Bridgeport's Cleaning Service on July 1, 2019. During July, the following transactions were completed. July 1 Stockholders invested $19,900 cash in the business in exchange for common stock. 1 Purchased used truck for $8,900, paying $4,200 cash and the balance on account. 3 Purchased cleaning supplies for $1,900 on account. 5 Paid $1,800 cash on a 1-year insurance policy effective July 1. 12 Billed customers $4,600 for cleaning services. 18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies. 20 Paid $2,600 cash for employee salaries. 21 Collected $3,300 cash from customers billed on July 12. 25 Billed customers $6,100 for cleaning services. 31 Paid $340 for the monthly gasoline bill for the truck. 31 Paid a $5,500 cash dividend. The chart of accounts for Bridgeport'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. Journalize the July transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record cash invested in business) (To record truck purchased) (To record gasoline expense) (To record dividends) Post the July transactions. (Post entries in the order of journal entries presented in the previous part.) No. 101 Cash Explanation Ref Date Debit Credit Balance J1 11 11 J1 J1 11 V J1 J1 No. 112 Accounts Receivable Explanation Ref Debit Date Credit Balance J1 J1 J1 No. 128 Supplies Explanation Ref Debit Date Credit Balance J1 No. 130 Prepaid Insurance Explanation Ref Debit Date Credit Balance J1 Equipment Explanation Ref Debit No. 157 Balance Date Credit J1 Accounts Payable Explanation Ref Debit No. 201 Balance Date Credit V J1 V J1 J1 Common Stock No. 311 Date Explanation Ref Debit Credit Balance J1 No. 332 Dividends Explanation Ref Debit Date Credit Balance 11 Service Revenue No. 400 Balance Date Explanation Ref Debit Credit J1 11 No. 633 Gasoline Expense Explanation Ref Debit Date Credit Balance J1 No. 726 Salaries and Wages Expense Explanation Ref Debit Date Credit Balance J1 Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet. . (1) Unbilled and uncollected revenue for services performed at July 31 were $2,800. (2) Depreciation on equipment for the month was $500. (3) One-twelfth of the insurance expired. (4) An inventory count shows $500 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $1,040. Bridgeport's Cleaning Service Worksheet Trial Balance Income Statement Balance Sheet Adjustments Dr. Adjusted Trial Balance Dr. Cr. Account Titles Dr. Cr. Dr. Cr. Dr. Cr. 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 Prepare an income statement for July. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Bridgeport's Cleaning Service Income Statement V $ $ $ Prepare a retained earnings statement for July. (List items that increase retained earnings first.) Bridgeport's Cleaning Service Retained Earnings Statement V $ Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.) Bridgeport's Cleaning Service Balance Sheet Assets Liabilities and Stockholders' Equity Journalize adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record revenue earned) (To record depreciation) (To record insurance expired) (To record supples used) (To record salaries payable) Post adjusting entries. (Post entries in the order of journal entries posted above.) Cash Explanation Ref J1 Credit Debit 19,900 No. 101 Balance 19,900 J1 4,200 1,800 J1 Date July 1 July 1 July 5 July 18 July 20 July 21 July 31 July 31 15,700 13,900 11,000 8,400 J1 2,900 J1 2,600 J1 3,300 J1 340 J1 5,500 11,700 11,360 5,860 No. 112 Balance 4,600 1,300 7,400 Accounts Receivable Explanation Ref Debit 11 4,600 Date Credit July 12 July 21 July 25 J1 3,300 J1 6,100 Adjusting 12 Date Supplies Explanation Ref 11 Credit Debit 1,900 No. 128 Balance 1,900 July 3 v Adjusting 12 Prepaid Insurance Explanation Ref Debit J1 1,800 Date July 5 Credit No. 130 Balance 1,800 Adjusting 12 Date July 1 Equipment Explanation Ref Debit Credit 11 8,900 Accumulated Depreciation Equipment Explanation Ref Debit Credit No. 157 Balance 8,900 No. 158 Balance Date Adjusting 12 Accounts Payable Explanation Ref Debit Date Credit No. 201 Balance 4,700 6,600 July 1 J1 4,700 1,900 July 3 July 18 3,700 J1 J1 2,900 Salaries and Wages Payable Explanation Ref Debit No. 212 Balance Date Credit Adjusting 12 Credit Date July 1 19,900 Date Credit Common Stock Explanation Ref Debit 31 Dividends Explanation Ref Debit J1 5,500 Service Revenue Explanation Ref Debit J1 J1 No. 311 Balance 19,900 No. 332 Balance 5,500 No. 400 Balance 4,600 10,700 July 31 Credit Date July 12 July 25 4,600 6,100 v Adjusting 12 Credit Gasoline Expense Date Explanation Ref Debit July 31 J1 340 Supplies Expense Date Explanation Ref Debit v Adjusting 12 No. 633 Balance 340 No. 634 Balance Credit Depreciation Expense Explanation Ref Debit No. 711 Balance Date Credit v Adjusting 12 Insurance Expense Explanation Ref Debit No. 722 Balance Date Credit Adjusting 12 No. 726 Date Salaries and Wages Expense Explanation Ref Debit J1 2,600 Credit Balance July 20 2,600 v Adjusting 12 Journalize closing entries and complete the closing process. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To close revenue account) (To close expense accounts) (To close net income / (loss)) (To close dividends) Post closing entries. (Post entries in the order of journal entries posted above.) No. 101 Balance 19,900 15,700 13,900 11,000 8,400 11,700 11,360 5,860 No. 112 Balance 4,600 1,300 7,400 10,200 No. 128 Balance 1,900 500 No. 130 Balance Cash Date Explanation Ref Debit Credit July 1 J1 19,900 July 1 31 4,200 July 5 J1 1,800 July 18 J1 2.900 July 20 31 2,600 July 21 31 3,300 July 31 J1 340 July 31 J1 5,500 Accounts Receivable Date Explanation Ref Debit Credit July 12 J1 4,600 July 21 J1 3,300 July 25 31 6,100 July 31 Adjusting 31 2,800 Supplies Date Explanation Ref Debit Credit July 3 J1 1,900 July 31 Adjusting 1,400 Prepaid Insurance Date Explanation Ref Debit Credit July 5 J1 1,800 July 31 Adjusting J2 150 Equipment Date Explanation Ref Debit Credit July 1 J1 8,900 Accumulated Depreciation-Equipment Date Explanation Ref Debit Credit July 31 Adjusting J2 500 Accounts Payable Date Explanation Ref Debit Credit July 1 J1 4,700 July 3 J1 1,900 July 18 31 2,900 Salaries and Wages Payable Date Explanation Ref Debit Credit July 31 Adjusting J2 1,040 Common Stock Date Explanation Ref Debit Credit July 1 J1 19,900 Retained Earnings Date Explanation Ref Debit Credit v Closing 13 1,800 1,650 No. 157 Balance 8,900 No. 158 Balance 500 No. 201 Balance 4,700 6,600 3,700 No. 212 Balance 1,040 No. 311 Balance 19,900 No. 320 Balance Closing 23 Dividends Explanation Ref J1 Debit Date July 31 Credit No. 332 Balance 5,500 5,500 Closing 13 Income Summary Explanation Ref Debit No. 350 Balance Date Credit vClosing 23 Closing 23 Closing 13 Service Revenue Explanation Ref Debit Credit Date July 12 July 25 July 31 J1 J1 J2 4,600 6,100 2,800 No. 400 Balance 4,600 10,700 13,500 Adjusting Closing 13 Gasoline Expense Explanation Ref Debit 11 340 Date Credit No. 633 Balance 340 July 31 Closing 13 Supplies Expense Explanation Ref Debit J1 1,400 Credit Date July 31 No. 634 Balance 1,400 Closing 33 Date July 31 Credit Depreciation Expense Explanation Ref Debit J2 500 No. 711 Balance 500 Adjusting Closing 23 Credit No. 722 Balance 150 Insurance Expense Date Explanation Ref Debit July 31 Adjusting J2 150 Closing 13 Salaries and Wages Expense Date Explanation Ref Debit July 20 J1 2,600 July 31 Adjusting 12 1,040 v Closing 23 Credit No. 726 Balance 2,600 3,640 Problem 4-05A a-g Heidi Jara opened Bridgeport's Cleaning Service on July 1, 2019. During July, the following transactions were completed. July 1 Stockholders invested $19,900 cash in the business in exchange for common stock. 1 Purchased used truck for $8,900, paying $4,200 cash and the balance on account. 3 Purchased cleaning supplies for $1,900 on account. 5 Paid $1,800 cash on a 1-year insurance policy effective July 1. 12 Billed customers $4,600 for cleaning services. 18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies. 20 Paid $2,600 cash for employee salaries. 21 Collected $3,300 cash from customers billed on July 12. 25 Billed customers $6,100 for cleaning services. 31 Paid $340 for the monthly gasoline bill for the truck. 31 Paid a $5,500 cash dividend. The chart of accounts for Bridgeport'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. Journalize the July transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record cash invested in business) (To record truck purchased) (To record gasoline expense) (To record dividends) Post the July transactions. (Post entries in the order of journal entries presented in the previous part.) No. 101 Cash Explanation Ref Date Debit Credit Balance J1 11 11 J1 J1 11 V J1 J1 No. 112 Accounts Receivable Explanation Ref Debit Date Credit Balance J1 J1 J1 No. 128 Supplies Explanation Ref Debit Date Credit Balance J1 No. 130 Prepaid Insurance Explanation Ref Debit Date Credit Balance J1 Equipment Explanation Ref Debit No. 157 Balance Date Credit J1 Accounts Payable Explanation Ref Debit No. 201 Balance Date Credit V J1 V J1 J1 Common Stock No. 311 Date Explanation Ref Debit Credit Balance J1 No. 332 Dividends Explanation Ref Debit Date Credit Balance 11 Service Revenue No. 400 Balance Date Explanation Ref Debit Credit J1 11 No. 633 Gasoline Expense Explanation Ref Debit Date Credit Balance J1 No. 726 Salaries and Wages Expense Explanation Ref Debit Date Credit Balance J1 Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet. . (1) Unbilled and uncollected revenue for services performed at July 31 were $2,800. (2) Depreciation on equipment for the month was $500. (3) One-twelfth of the insurance expired. (4) An inventory count shows $500 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $1,040. Bridgeport's Cleaning Service Worksheet Trial Balance Income Statement Balance Sheet Adjustments Dr. Adjusted Trial Balance Dr. Cr. Account Titles Dr. Cr. Dr. Cr. Dr. Cr. 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 Prepare an income statement for July. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Bridgeport's Cleaning Service Income Statement V $ $ $ Prepare a retained earnings statement for July. (List items that increase retained earnings first.) Bridgeport's Cleaning Service Retained Earnings Statement V $ Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.) Bridgeport's Cleaning Service Balance Sheet Assets Liabilities and Stockholders' Equity Journalize adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record revenue earned) (To record depreciation) (To record insurance expired) (To record supples used) (To record salaries payable) Post adjusting entries. (Post entries in the order of journal entries posted above.) Cash Explanation Ref J1 Credit Debit 19,900 No. 101 Balance 19,900 J1 4,200 1,800 J1 Date July 1 July 1 July 5 July 18 July 20 July 21 July 31 July 31 15,700 13,900 11,000 8,400 J1 2,900 J1 2,600 J1 3,300 J1 340 J1 5,500 11,700 11,360 5,860 No. 112 Balance 4,600 1,300 7,400 Accounts Receivable Explanation Ref Debit 11 4,600 Date Credit July 12 July 21 July 25 J1 3,300 J1 6,100 Adjusting 12 Date Supplies Explanation Ref 11 Credit Debit 1,900 No. 128 Balance 1,900 July 3 v Adjusting 12 Prepaid Insurance Explanation Ref Debit J1 1,800 Date July 5 Credit No. 130 Balance 1,800 Adjusting 12 Date July 1 Equipment Explanation Ref Debit Credit 11 8,900 Accumulated Depreciation Equipment Explanation Ref Debit Credit No. 157 Balance 8,900 No. 158 Balance Date Adjusting 12 Accounts Payable Explanation Ref Debit Date Credit No. 201 Balance 4,700 6,600 July 1 J1 4,700 1,900 July 3 July 18 3,700 J1 J1 2,900 Salaries and Wages Payable Explanation Ref Debit No. 212 Balance Date Credit Adjusting 12 Credit Date July 1 19,900 Date Credit Common Stock Explanation Ref Debit 31 Dividends Explanation Ref Debit J1 5,500 Service Revenue Explanation Ref Debit J1 J1 No. 311 Balance 19,900 No. 332 Balance 5,500 No. 400 Balance 4,600 10,700 July 31 Credit Date July 12 July 25 4,600 6,100 v Adjusting 12 Credit Gasoline Expense Date Explanation Ref Debit July 31 J1 340 Supplies Expense Date Explanation Ref Debit v Adjusting 12 No. 633 Balance 340 No. 634 Balance Credit Depreciation Expense Explanation Ref Debit No. 711 Balance Date Credit v Adjusting 12 Insurance Expense Explanation Ref Debit No. 722 Balance Date Credit Adjusting 12 No. 726 Date Salaries and Wages Expense Explanation Ref Debit J1 2,600 Credit Balance July 20 2,600 v Adjusting 12 Journalize closing entries and complete the closing process. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To close revenue account) (To close expense accounts) (To close net income / (loss)) (To close dividends) Post closing entries. (Post entries in the order of journal entries posted above.) No. 101 Balance 19,900 15,700 13,900 11,000 8,400 11,700 11,360 5,860 No. 112 Balance 4,600 1,300 7,400 10,200 No. 128 Balance 1,900 500 No. 130 Balance Cash Date Explanation Ref Debit Credit July 1 J1 19,900 July 1 31 4,200 July 5 J1 1,800 July 18 J1 2.900 July 20 31 2,600 July 21 31 3,300 July 31 J1 340 July 31 J1 5,500 Accounts Receivable Date Explanation Ref Debit Credit July 12 J1 4,600 July 21 J1 3,300 July 25 31 6,100 July 31 Adjusting 31 2,800 Supplies Date Explanation Ref Debit Credit July 3 J1 1,900 July 31 Adjusting 1,400 Prepaid Insurance Date Explanation Ref Debit Credit July 5 J1 1,800 July 31 Adjusting J2 150 Equipment Date Explanation Ref Debit Credit July 1 J1 8,900 Accumulated Depreciation-Equipment Date Explanation Ref Debit Credit July 31 Adjusting J2 500 Accounts Payable Date Explanation Ref Debit Credit July 1 J1 4,700 July 3 J1 1,900 July 18 31 2,900 Salaries and Wages Payable Date Explanation Ref Debit Credit July 31 Adjusting J2 1,040 Common Stock Date Explanation Ref Debit Credit July 1 J1 19,900 Retained Earnings Date Explanation Ref Debit Credit v Closing 13 1,800 1,650 No. 157 Balance 8,900 No. 158 Balance 500 No. 201 Balance 4,700 6,600 3,700 No. 212 Balance 1,040 No. 311 Balance 19,900 No. 320 Balance Closing 23 Dividends Explanation Ref J1 Debit Date July 31 Credit No. 332 Balance 5,500 5,500 Closing 13 Income Summary Explanation Ref Debit No. 350 Balance Date Credit vClosing 23 Closing 23 Closing 13 Service Revenue Explanation Ref Debit Credit Date July 12 July 25 July 31 J1 J1 J2 4,600 6,100 2,800 No. 400 Balance 4,600 10,700 13,500 Adjusting Closing 13 Gasoline Expense Explanation Ref Debit 11 340 Date Credit No. 633 Balance 340 July 31 Closing 13 Supplies Expense Explanation Ref Debit J1 1,400 Credit Date July 31 No. 634 Balance 1,400 Closing 33 Date July 31 Credit Depreciation Expense Explanation Ref Debit J2 500 No. 711 Balance 500 Adjusting Closing 23 Credit No. 722 Balance 150 Insurance Expense Date Explanation Ref Debit July 31 Adjusting J2 150 Closing 13 Salaries and Wages Expense Date Explanation Ref Debit July 20 J1 2,600 July 31 Adjusting 12 1,040 v Closing 23 Credit No. 726 Balance 2,600 3,640