Jan Jansen opened Jan's Window Washing Inc. on July 1, 1996. During July the following transactions were completed.

July 1 Issued \(\$ 8,000\) of common stock for \(\$ 8,000\) cash.

1 Purchased used truck for \(\$ 6,000\), paying \(\$ 3,000\) cash and the balance on account.

3 Purchased cleaning supplies for \(\$ 900\) on account.

5 Paid \(\$ 1,200\) cash on one-year insurance policy effective July 1.

12 Billed customers \(\$ 2,500\) for cleaning services.

18 Paid \(\$ 1,000\) cash on amount owed on truck and \(\$ 500\) on amount owed on cleaning supplies.

20 Paid \(\$ 1,200\) cash for employee salaries.

21 Collected \(\$ 1,400\) cash from customers billed on July 12 .

25 Billed customers \(\$ 3,000\) for cleaning services.

31 Paid gas and oil for month on truck \(\$ 200\).

31 Declared and paid \(\$ 600\) cash dividend.

The chart of accounts for Jan's Window Washing Inc. contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Fees Earned, No. 633 Gas \& Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, No. 726 Salaries Expense.

\section*{Instructions}

(a) Journalize and post the July transactions. Use page J1 for the journal and the threecolumn form of account.

(b) Prepare a trial balance at July 31 on a work sheet.

(c) Enter the following adjustments on the work sheet and complete the work sheet.

(1) Earned but unbilled fees at July 31 were \(\$ 1,100\).

(2) Depreciation on equipment for the month was \(\$ 200\).

(3) One-twelfth of the insurance expired.

(4) An inventory count shows \(\$ 600\) of cleaning supplies on hand at July 31.

(5) Accrued but unpaid employee salaries were \(\$ 400\).

(d) Journalize and post adjusting entries. Use page \(\mathrm{J} 2\) for the journal.

(e) Prepare the income statement and retained earnings statement for July and a classified balance sheet at July 31 .

(f) Journalize and post closing entries and complete the closing process. Use page \(\mathrm{J} 3\) for the journal.

(g) Prepare a post-closing trial balance at July 31.

Analyze errors and prepare correcting entries.

(SO S)