SPARKLE CLEANING SERVICE Problem Data For the Month Ended July 31, 2016 Fred Severini opened SPARKLE Cleaning Service on July 1, 2016. During July, the company completed the following transactions. July 1 Stockholders invested cash in the business in exchange for common stock. $15,000 1 Purchased a used cleaning truck on account. $12,000 3 Purchased cleaning supplies on account. $1,800 5 Paid on a one-year insurance policy, effective July 1. $2,100 12 Billed customers for cleaning services. $4,400 18 Paid on amount owed on truck. $4,000 20 Paid employee salaries. $2,000 21 Collected from customers billed on July 12. $2,400 25 Billed customers for cleaning services. $2,200 31 Paid gasoline for the month on the truck. $500 31 Declared and paid a cash dividend. $600 The chart of accounts for SPARKLE Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gasoline Expense, No. 634 Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. SPARKLE CLEANING SERVICE Ledger Accounts For the Month Ended July 31, 2016 Cash Ref. No. 101 Balance Explanation Debit Credit Date 1-Jul Accounts Receivable Ref. No. 112 Balance Explanation Debit Credit Date 12-Jul Supplies Ref. No. 128 Balance Explanation Debit Credit Date 3-Jul Prepaid Insurance Ref. No. 130 Balance Explanation Debit Date 5-Jul Credit Equipment Ref. No. 157 Balance Explanation Debit Credit Date 1-Jul Accumulated Depreciation Equipment Explanation Ref. Debit No. 158 Balance Credit Date 31-Jul Accounts Payable Ref. No. 201 Balance Explanation Debit Credit Date 1-Jul Accounts Payable Ref. No. 201 Balance Explanation Debit Credit Date 1-Jul Salaries and Wages Payable Explanation Ref. No. 212 Balance Debit Credit Date 31-Jul Common Stock Ref. Explanation Debit Date 1-Jul Credit 15,000 No. 311 Balance 15,000 Retained Earnings Ref. No. 320 Balance Explanation Debit Credit Date 31-Jul Dividends Ref. No. 332 Balance Explanation Debit Credit Date 31-Jul Income Summary Ref. No. 350 Balance Explanation Debit Credit Date 31-Jul Service Revenue Ref. No. 400 Balance Explanation Debit Credit Date 12-Jul Gasoline Expense Ref. No. 633 Balance Explanation Debit Credit Date 31-Jul Supplies Expense Ref. No. 634 Balance Explanation Debit Credit Date 31-Jul Depreciation Expense Ref. No. 711 Balance Explanation Debit Credit Date 31-Jul Insurance Expense Ref. No. 722 Balance Explanation Debit Date 31-Jul Credit Salaries and Wages Expense Explanation Ref. No. 726 Balance Debit Credit Date 20-Jul