*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.) 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 $2,691. (2) Depreciation on equipment for the month was $576 (3) One-twelfth of the insurance expired. (4) An inventory count shows $574 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $1,013. JARA'S CLEANING SERVICE Worksheet For the Month Ended July 31, 2015 Trial Balance Adjustments Adjusted Trial Cr Income Statement Balance Sheet Balance Account Titles Dr Cr. Dr Cr Cr Dr Dr Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Common Stock Dividends Service Revenue Gasoline Expense Salaries and Wages Expense 653 150 986 788 071 65 653 841 74 639 071 841 691 412 63 071 224 224 224 20194 T 0194 0194 518 518 51 T13327 1232 691 3327 534 54 547 Totals Depreciation Expense Accum. Depr.-Equipment Insurance Expense Supplies Expense Salaries and Wages Payable 5054 135054 76 412 013 013 Totals 841 5841 9334 9334 03 289 33273S 3327 33296 Net Income 289 Totals 3296 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.) July 18 Salaries and Wages Payable 4,224 No. 212 Ref Debit Credit Balance J1 2,987 DateExplanation 21013 13 Adjusting uly 31l Me. 311 Ref Debit Credit Balance 20,194 20,194 No. 332 Ref Deblt Credit Balance 5,518 No. 400 Ref Debit Credit Balance 4,537 4,537 6,099 10,636 Common Stock Explanation Date Dividends Date Explanatiorn July 31 Service Revenue J1 5,518 DateExplanatlon J1 July 14 July 28 J1 32 [T 6911 133271 Adjusting uly 31 Gasoline Expense 691 T13327 No. 633 Ref Debit Credit Balance 354 No. 634 Ref Deblt Credit Balance 1412 DateExplanation July 31 Supplles Expense 01 Explanation Date DuY 3 Adjust Depreclation Expense 2 412 Adjusting DateExplanatlon Ref Debit Credit Balance 2 761 761 Adjusting uly 31 Insurance Expense Ne. 722 Date Explanatlorn Ref Debit Credit Balance Duy 3 Adjusti Adjusting Salaries and Wages Expense No. 726 Ref Debit Credit Balance 2,534 Explanation Date July 20 1 2,534 23547 uy 3 Adjusting (f2) Post closing entries. (Post entries in the order of journal entries posted above.) No. 101 Date Explanation Ref Dosit Credit uly 1 July 1 July 5 uly 18 uly 20 uly 21 July 31 July 31 Accounts Receivable JI 20,194 20,194 16,348 14,560 11,573 9,039 12,525 12,171 6,653 No. 112 3,846 1,788 2,987 2,534 31 ji J1 J1 J1 JI 3,486 354 5,518 Explanation Ref Dabit Credit 4,537 1,051 7,150 9,841 No. 128 July 12 uly 21 July 25 uly 31 Supplles 4,537 J1 3,486 6,099 2,691 Adjusting J1 Explanation Ref J1 Adjusting J2 Credit Date July 3 uly 31 Prepald Insurance 1,986 1,986 574 130 1,412 Date Debit Credit July 5 July 31 Equipment JI 1,788 1,788 1,639 No. 157 Adjusting 12 149 Date Explanation Ref Credit Debit July 1 Accumulated Depreciation-Equipment 9,071 No. 158 01 9,071 Date Explanation Ref Adjusting 2 Credit 576 July 31 Accounts Payable 576 No. 201 Explanation Ref Desit 3,846 1,986 3,846 7,211 4,224 No. 212 uly 1 July 3 July 18 Salaries and Wages Payable 31 01 2,987 Explanation Ref Adjusting J2 Daait Credit July 31 1,013 1,013