*Problem 4-5A (Part Level Submission) Heidi Jara opened Jara's Cleaning Service on July 1, 2015. During July, the following transactions were completed. July 1 Stockholders invested $20,194 cash in the business in in exchange for common stock. 1 Purchased used truck for $9,071, paying $3,846 cash and the balance on account. 3 Purchased cleaning supplies for $1,986 on account. 5 Paid $1,788 cash on 1-year insurance policy effective July 1 12 Billed customers $4,537 for cleaning services. 18 Paid $1,580 cash on amount owed on truck and $1,407 on amount owed on cleaning supplies 20 Paid $2,534 cash for employee salaries. 21 Collected $3,486 cash from customers billed on July 12 25 Billed customers $6,099 for cleaning services. 31 Paid $354 for the monthly gasoline bill for the truck. 31 Paid a $5,518 cash dividend (a1) Your answer is correct. Journalize the July transactions. (Credit account titles are au Date Account Titles and Explanation Debit Credit 20194 July 1 ashl ommon Stock 20194 (To record cash invested in business.) July 1 Equipment 071 %E846/ ashl ccounts Payable (To record truck purchased.) 986/ % 986 788 ' uly 3 Supplies unts Payablel July 5 Prepaid Insurance ashl uly 12 Accounts Receivable 537T ervice Revenuel uly 18 Accounts Payable ashl July 2d salaries and wages Expense % - 534 54 534 T ashl 3486 July 21 Cash Accounts Recelivable 3486 July 25 Accounts Receivablel Service Revenue _1099 July 31 Gasoline Expensel 54 ashl (To record gasoline expense.) uly 31 Dividends 518 ash (To record dividends.) E] Prepare the income statement for July. (Enter nes Your answer is correct. JARA'S CLEANING SERVICE Income Statement For the Month Ended July 31, 2015 evenue 3327 ervice Revenue Expenses 9354 asoline Expensel alanes and Wages Expense13547 Depreclation Expense 376 T149 nsurance Expense upplies Expense otal Expenses et Income (Loss) 412 6038 37289 "(d2) Your answer is correct. Prepare the retained earnings statement for July. ARA'S CLEANING SERVICE Retained Earnings Statement For the Month Ended July 31, 2015 etained Earnings, July 1 dd: Net Income/ (Loss) 289 ss: Dividendsl etained Earnings, July 31 *(d3) Your answer is correct. Prepare a classified balance sheet at July 31. (List current assets in order JARA'S CLEANING SERVICE Balance Sheet July 31, 2015 Assets urrent Assets 653 841 574 639 ccounts Recelvable ies repald Insurance tal Current Assets roperty, Plant and Equipment 18707 Equipment Less Accumulated Depreciation-Equipment 071/ 27202 otal Assets Liabilities and Stockholders' Equity rrent Liabilities ccounts Payable alaries and Wages Payable otal Current Liabilities tockholders' Equity 224 2013 237 Common Stock 20194 etained Earnings otal Stockholders' Equity 1965 27202 Ttotal Liabilities and Stockholders' Equityl "(e1) Your answer is correct. Journalize adjusting entries. (Credit account titles are aut Date Account Titles and Explanatiorn Debit Credit ccounts Receivable ervice Revenue (To record revenue earned.) 576 Accumulated Depreciation-Equipment L July 3t Depreciation Expensel 5% (To record depreclation.) July 3insurance Expensel Prepaid Insurance 49 (To record insurance expired.) 7412 % 21412 July 31 Supplies Expensel Supplies (To record supplies used.) July 3 alariesandwagesExpensel 7013 % Salaries and Wages Payable1013 (To record salarles payable.) "(e2) Your answer is correct. Post adjusting entries. (Post entries in the order of journal entries pos No. 101 Ref Debit Credit Balance 20,194 3,846 16,348 1,788 14,560 2,987 11,573 2,534 9,039 12,525 354 12,171 5,518 6,653 No. 112 Ref Debit Credit Balance 4,537 3,486 1,051 7,150 Date Explanation 11 20,194 J1 01 J1 July 1 July 1 uly 5 uly 18 uly 20 uly 21 July 31 uly 31 Accounts Recelvable J1 3,486 J1 DateExplanation July 14 July 21 Duly 28 J1 4,537 01 1 6,099 2 6911 ' 8411 uly 31 Adjusting 128 Ref Debit Credit Balance 1,986 1412 574 No. 130 Ref Debit Credit Balance 1,788 T149 639 No. 157 Ref Debit Credit Balance 9,071 No. 158 Ref Debit Credit Balance Date July 3 1 1,986 uyAdjusting 12 Prepaid Insurance Cate July 5 J1 1,788 uly 31 dtng Equipment 12 Date uly 1 Accumulated Depreclation-Equipment J1 9,071 Date Explanation Adjusting 76 5761 No. 201 Ref Debit Credit Balance 5,225 5,225 1,986 7,211 4,224 Accounts Payable Date 01 July 1 uly 3 July 18 J1 2,987 (f1) Journalize closing entries and complete the closing process. (Credit account titles are a Date Account Titles and Explanation Deblt Credit July 31 To dose revenue account.) July 31 (To dose expense accounts.) July 31 To dose net income/ (loss).) July 31 (To dose dividends.)
