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 the 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 the amount owed on the 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 DepreciationEquipment, 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. Requirements (a) Journalize and post the July transactions. Transactions should be posted to both the general journal and the respective ledger account. (b) Prepare a trial balance on July 31 on a worksheet. The trial balance should total $31,400 (c) Enter the following adjustments on the worksheet and complete the worksheet. 1. Unbilled fees for services performed at July 31. $1,300 2. Depreciation on equipment for the month was. $225 3. One month of insurance has expired. $175 4. An inventory count shows cleaning supplies on hand on July 31. $300 5. Accrued but unpaid employee salaries were. $650 (d) Prepare the income statement and retained earnings statement for July, and a classified balance sheet at July 31, 2016. Net Income will be $2,850. (e) Journalize and post the adjusting entries. Use page J2 of the general journal. Do not forget to post these entries to the respective ledger account. (f) Journalize and post the closing entries, and complete the closing process. Use page J3 of the general journal. (g) Prepare a post-closing trial balance on July 31. The final balance will be $27,925.