Problem 4-5A (Part Level Submission)

Anya Clark opened Anyas Cleaning Service on July 1, 2017. During July, the following transactions were completed.

July 1 Anya invested $20,000 cash in the business. 1 Purchased used truck for $12,000, paying $4,000 cash and the balance on account. 3 Purchased cleaning supplies for $2,100 on account. 5 Paid $1,800 cash on 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 $2,800 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 Withdrew $5,600 cash for personal use.

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(a1)

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(a2)

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(b) and (c)

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 $2,700. (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.

ANYAS CLEANING SERVICE Worksheet For the Year Ended July 31, 2017 For the Month Ended July 31, 2017 July 31, 2017 Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Owners Capital Owners Drawings 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

SHOW LIST OF ACCOUNTS