question: Accounting cycle review
Lee Chang opened Sandhill's Window Washing on July 1, 2021. In July, the following transactions were completed: July 1 1 1 5 12 18 25 28 31 31 Invested $22,000 cash in the business. Purchased a used truck for $25,200, paying $5,200 cash and signing a note payable for the balance. Paid $2,800 on a one-year insurance policy, effective July 1. Billed customers $4,100 for cleaning services. Purchased supplies for $2,100 on account. Paid $3,000 for employee salaries. Billed customers $9,200 for cleaning services. Collected $4,100 from customers billed on July 5. Paid $550 for repairs on the truck. Withdrew $2,300 cash for personal use. Journalize and post the July transactions to the general ledger. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record cash invested in the business) (To record purchase of truck) (To record payment of insurance) (To record payment of fuel) (To record cash withdrawal for personal use) Cash Debit Credit Balance Date Explanation Ref. July 1 J1 1 J1 1 J1 18 J1 28 J1 31 J1 31 J1 Accounts Receivable Debit Credit Balance Date Explanation Ref. July 5 J1 25 J1 28 J1 Supplies Explanation Ref. Debit Credit Balance Date July 12 J1 Prepaid Insurance Debit Date Explanation Ref. Credit Balance July 1 J1 Vehicles Date Debit Credit Balance Explanation Ref. J1 July 1 Accounts Payable Debit Credit Balance Date Explanation Ref. July 12 J1 Notes Payable Debit Credit Balance Date Explanation Ref. July 1 J1 L. Chang, Capital Debit Date Explanation Ref. Credit Balance July 1 J1 L. Chang, Drawings Debit Credit Balance Date Explanation Ref. July 31 J1 Service Revenue Debit Date Explanation Ref. Credit Balance July 5 J1 25 J1 Repairs Expense Debit Credit Balance Date Explanation Ref. July 31 J1 Salaries Expense Debit Date Explanation Ref. Credit Balance July 18 J1 Prepare a trial balance at July 31. SANDHILL'S WINDOW WASHING Trial Balance Debit Credit $ > > Prepare a classified balance sheet at July 31, 2021. Of the note payable, $5,000 must be paid by July 30, 2022. (List Current Assets in order of liquidity. Round answers to decimal places, eg. 5,276.) SANDHILL'S WINDOW WASHING Balance Sheet Assets $ $ > > Liabilities and Owner's Equity $ $ Journalize and post the closing entries. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,276) Date Account Titles and Explanation Debit Credit July 31 [To close revenue account) July 31 > > Prepare a classified balance sheet at July 31, 2021. Of the note payable, $5,000 must be paid by July 30, 2022. (List Current Assets in order of liquidity. Round answers to decimal places, eg. 5,276.) SANDHILL'S WINDOW WASHING Balance Sheet Assets $ $ > > Liabilities and Owner's Equity $ $ Journalize and post the closing entries. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,276) Date Account Titles and Explanation Debit Credit July 31 [To close revenue account) July 31 >
