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Linda Blye opened Cardinal Window Washing Inc. on July 1, 2010. During July the following transactions were completed. July 1 Issued 11.000 shares of common
Linda Blye opened Cardinal Window Washing Inc. on July 1, 2010. During July the following transactions were completed. July 1 Issued 11.000 shares of common stock for $11.000 cash. 1 Purchased used truck for $9.000, paying $3.000 cash and the balance on account. 3 Purchased cleaning supplies for $800 on account. 5 Paid $1.800 cash on 1-year insurance policy effective July 1. 12 Billed customers $3.200 for cleaning services. 18 Paid $1.000 cash on amount owed on truck and $500 on amount owed on cleaning supplies. 20 Paid $2.000 cash for employee salaries. 21 Collected $1.400 cash from customers billed on July 12. 25 Billed customers $2.500 for cleaning services. 31 Paid $260 for gas and oil used in the truck during month. 31 Declared and paid $600 cash dividend. Instructions (a) Journalize the July transactions. (b) Post to the ledger accounts. (Use t accounts) (c) Prepare a trial balance at July 31. (d) Journalize the following adjustments. (1) Services provided but unbilled and uncollected at July 31 were $1.700. (2) Depreciation on equipment for the month was $250. (3) One-twelfth of insurance expired. (4) An inventory count shows $360 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $400. (e) Post adjusting entries to the T accounts. (f) Prepare an adjusted trial balance. (g) Prepare the income statement and a retained earning statement for July and a classified balance sheet at July 31. (h) Journalize and post closing entries and complete the closing process. (i) Prepare a post-closing trial balance at July 31
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