The trial balance of Sterling Dry Cleaners Inc. on June 30 is shown below.

The July transactions were as follows:
July 8 Collected \(\$ 4,936\) in cash on June 30 accounts receivable.
9 Paid employee salaries \(\$ 2,100\).
11 Received \(\$ 4,325\) in cash for services rendered.
14 Paid June 30 creditors \(\$ 10,750\) on account.
17 Purchased supplies on account \(\$ 554\).
22 Billed customers for services rendered, \(\$ 4,700\).
30 Paid employee salaries \(\$ 3,114\), utilities \(\$ 1,384\), and repairs \(\$ 692\).
31 Declared and paid a \(\$ 700\) cash dividend.
\section*{Instructions}

(a) Enter the opening balances in the ledger accounts as of July 1. Write "Balance" in the explanation space and insert a check mark \((\sqrt{ }\) ) in the reference column. Provision should be made for the following additional accounts: No. 332 Dividends; No. 428 Dry Cleaning Revenue; No. 622 Repair Expense; No. 726 Salaries Expense; and No. 732 Utilities Expense.

(b) Journalize the transactions.

(c) Post to the ledger accounts.

(d) Prepare a trial balance on July 31, 1996.

Transcribed Image Text:

STERLING DRY CLEANERS INC. Trial Balance June 30, 1996 Account No. Debit Credit 101 Cash $12,532 112 Accounts Receivable 10,536 126 Supplies 4,844 157 Equipment 25,950 201 206 Accounts Payable $15,878 Unearned Revenue 1,730 311 Common Stock 30,000 320 Retained Earnings 6,254 $53,862 $53,862