Sandhill Clark opened Sandhill's Cleaning Service on July 1, 2022. During July, the following transactions were completed. July 1 1 3 5 12 18 Sandhill invested $20,000 cash in the business. Purchased used truck for $9,100, paying $4,200 cash and the balance on account, Purchased cleaning supplies for $2,200 on account. Paid $1,680 cash on a 1-year insurance policy effective July 1. Billed customers $4,600 for cleaning services. Paid $1,600 cash on amount owed on truck and $1,300 on amount owed on cleaning supplies, Paid $2,600 cash for employee salaries. Collected $3,300 cash from customers billed on July 12. Billed customers $6,000 for cleaning services. Paid $340 for the monthly gasoline bill for the truck. Withdraw $5,500 cash for personal use. 20 21 25 31 31 SANDHILL'S CLEANING SERVICE Income Statement For the Month Ended July 31, 2022 Revenues Service Revenue Expenses Gasoline Expense $ 340 Salaries and Wages Expense 2000 Depreciation Expense Insurance Expense Supplies Expense Total Expenses $ Net Income/(Loss) Prepare the owner's equity statement for July. (List items that increase owner's equity first.) SANDHILL'S CLEANING SERVICE Owner's Equity Statement SANDRILLS CLEANING SERVICE Balance Sheet Assets $ I $ $ Liabilities and Owner's Equity $ $ Journalize adjusting entries. (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) Date Account Titles and Explanation Debit Credit (To record revenue earned) (To record depreciation) (To record insurance expired) (To record depreciation) (To record insurance expired) (To record supplies used) (To record salaries payable) Post adjusting entries. (Post entries in the order of journal entries posted above.) Cash No. 101 Date Explanation Debit Credit Balance July 1 20,000 July 1 20,000 15,800 4,200 July 5 1,680 14,120 July 18 2.900 11.220 July 20 2.600 8,620 July 21 3,300 11.920 July 31 340 11,580 July 31 5.500 6.080 Accounts Receivable Debit No. 112 Date Explanation Credit Balance July 14 4.600 4.600 July 21 3,300 1,300 July 25 6,000 7.300 Adjusting Supplies No. 126 Date Explanation Debit Credit Balance July 3 2,200 2.200 Adjusting Prepaid Insurance No. 130 Date Explanation Debit Credit Balance July 5 1.680 1.680 Adjusting No. 157 Equipment Debit Date Explanation Credit Balance July 1 9.100 Accumulated Depreciation-Equipment Explanation Debit 9.100 No. 158 Balance Date Credit Adjusting No. 201 Accounts Payable Debit Date Explanation Credit Balance July 1 4.900 4.900 July 3 2,200 7.100 4,200 July 18 2,900 No. 212 Salaries and Wages Payable Explanation Debit Date Credit Balance Adjusting Owner's Capital Debit Date Explanation Credit July 1 20,000 No. 301 Balance 20,000 No. 306 Balance 5,500 No. 400 Date Explanation Credit Owner's Drawings Debit 5,500 Service Revenue Debit July 31 Date Explanation Credit Balance July 14 4,600 4,600 July 25 6,000 10,600 Adjusting Gasoline Expense No. 633 Date Explanation Debit Balance Credit 340 340 July 31 Supplies Expense No. 631 Date Explanation Debit Credit Balance Adjusting Date No. 711 Balance Credit Depreciation Expense Explanation Debit Adjusting Insurance Expense Explanation Debit Adjusting Salaries and Wages Expense Explanation Debit Date No. 722 Balance Credit No. 726 Date Credit Balance July 20 2.600 2,600 Adjusting 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 displayed in the problem.) Date Account Titles and Explanation Debit Credit (To close revenue account) (To close expense accounts) (To close net income / (loss)> (To cose drawings) Post closing entries. (Post entries in the order of journal entries posted above.) No. 101 Cash Debit Date Explanation Credit Balance July 1 20.000 20,000 July 1 4,200 15,800 July 5 1.680 14,120 July 18 2.900 11.220 July 20 2.600 8.620 July 21 3.300 11.920 July 31 340 11.580 July 31 5,500 6,080 No. 112 Accounts Receivable Explanation Debit Date Credit Balance July 12 4,600 4,600 July 21 3,300 1.300 July 25 6,000 July 31 Adjusting 2.700 Supplies Debit 7,300 10.000 No. 126 Balance 2.200 Date Explanation Credit July 3 2.200 July 31 Adjusting 1.500 700 Prepaid Insurance No. 130 Date Explanation Debit Credit Balance July 5 1.680 1.680 July 31 Adjusting 140 1,540 yutu No. 157 Equipment Debit Date Explanation Credit Balance July 1 9.100 9.100 No. 158 Balance Date Credit July 31 Accumulated Depreciation-Equipment Explanation Debit Adjusting Accounts Payable Explanation Debit 500 500 No. 201 Balance Date Credit July 1 4,900 4.900 July 3 2,200 7.100 July 18 2,900 4,200 Salaries and Wages Payable No. 212 Date Explanation Debit Credit Balance July 31 Adjusting 1,100 1,100 Owner's Capital Debit No. 301 Date Explanation Credit Balance July 1 20.000 20,000 v Closing Closing No. 306 Owner's Drawings Debit Date Explanation Credit Balance July 31 5,500 5,500 Closing Income Summary No. 350 Date Explanation Debit Credit Balance Closing Closing (To cose drawings) Post closing entries. (Post entries in the order of journal entries posted above.) No. 101 Cash Debit Date Explanation Credit Balance July 1 20.000 20,000 July 1 4,200 15,800 July 5 1.680 14,120 July 18 2.900 11.220 July 20 2.600 8.620 July 21 3.300 11.920 July 31 340 11.580 July 31 5,500 6,080 No. 112 Accounts Receivable Explanation Debit Date Credit Balance July 12 4,600 4,600 July 21 3,300 1.300 July 25 6,000 July 31 Adjusting 2.700 Supplies Debit 7,300 10.000 No. 126 Balance 2.200 Date Explanation Credit July 3 2.200 July 31 Adjusting 1.500 700 Prepaid Insurance No. 130 Date Explanation Debit Credit Balance July 5 1.680 1.680 July 31 Adjusting 140 1,540 yutu No. 157 Equipment Debit Date Explanation Credit Balance July 1 9.100 9.100 No. 158 Balance Date Credit July 31 Accumulated Depreciation-Equipment Explanation Debit Adjusting Accounts Payable Explanation Debit 500 500 No. 201 Balance Date Credit July 1 4,900 4.900 July 3 2,200 7.100 July 18 2,900 4,200 Salaries and Wages Payable No. 212 Date Explanation Debit Credit Balance July 31 Adjusting 1,100 1,100 Owner's Capital Debit No. 301 Date Explanation Credit Balance July 1 20.000 20,000 v Closing Closing No. 306 Owner's Drawings Debit Date Explanation Credit Balance July 31 5,500 5,500 Closing Income Summary No. 350 Date Explanation Debit Credit Balance Closing Closing