| Ashley Williams opened Ashley's Maids Cleaning Service on July 1, 2017. During July, the com-...

 

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| Ashley Williams opened Ashley's Maids Cleaning Service on July 1, 2017. During July, the com- pany completed the following transactions. July 1 Invested $14,000 cash in the business. 1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $800 on account. 5 Paid $2,160 on a l-year insurance policy, effective July 1. 12 Billed customers $3,800 for cleaning services. 18 Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies. 20 Paid $1,600 for employee salaries. 21 Collected $1,400 from customers billed on July 12. 25 Billed customers $1,900 for cleaning services. 31 Paid gasoline for the month on the truck, $400. 31 Withdrew $700 cash for personal use. The chart of accounts for Ashley's Maids Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equip- ment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 301 Owner's Capital, No. 306 Owner's Drawings, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. Instructions (a) Journalize and post the July transactions. Use page J1 for the journal. (b) Prepare a trial balance at July 31 on a worksheet. (c) Enter the following adjustments on the worksheet, and complete the worksheet. (1) Unbilled fees for services performed at July 31 were $1,300. (2) Depreciation on equipment for the month was $200. (3) One-twelfth of the insurance expired. (4) An inventory count shows $100 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $500. (d) Prepare the income statement and owner's equity statement for July, and a classified balance sheet at July 31, 2017. (e) Journalize and post the adjusting entries. Use page J2 for the journal. () Journalize and post the closing entries, and complete the closing process. Use page J3 for the journal. (g) Prepare a post-closing trial balance at Iulu. 31 | Ashley Williams opened Ashley's Maids Cleaning Service on July 1, 2017. During July, the com- pany completed the following transactions. July 1 Invested $14,000 cash in the business. 1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $800 on account. 5 Paid $2,160 on a l-year insurance policy, effective July 1. 12 Billed customers $3,800 for cleaning services. 18 Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies. 20 Paid $1,600 for employee salaries. 21 Collected $1,400 from customers billed on July 12. 25 Billed customers $1,900 for cleaning services. 31 Paid gasoline for the month on the truck, $400. 31 Withdrew $700 cash for personal use. The chart of accounts for Ashley's Maids Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equip- ment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 301 Owner's Capital, No. 306 Owner's Drawings, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. Instructions (a) Journalize and post the July transactions. Use page J1 for the journal. (b) Prepare a trial balance at July 31 on a worksheet. (c) Enter the following adjustments on the worksheet, and complete the worksheet. (1) Unbilled fees for services performed at July 31 were $1,300. (2) Depreciation on equipment for the month was $200. (3) One-twelfth of the insurance expired. (4) An inventory count shows $100 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $500. (d) Prepare the income statement and owner's equity statement for July, and a classified balance sheet at July 31, 2017. (e) Journalize and post the adjusting entries. Use page J2 for the journal. () Journalize and post the closing entries, and complete the closing process. Use page J3 for the journal. (g) Prepare a post-closing trial balance at Iulu. 31

Answer rating: 100% (QA)

a Debit amount Credit amount July 1 st 2017 in in 101 Cash account 14000 301 To Owners Capital 14000 being cash brought in as capital July 1 st 2017 157 Equipment account 10000 101 To Cash account 4000 201 To Accounts Payable 6000 Being used truck purchased after payment of 4000 and balance payable in account July 3 rd 2017 631 Supply Expenses 800 121 To Suppliers account 800 Being cleaning material supplied in account July 5 th 2017 722 Insurance expenses 2160 101 To Cash 2160 Being insurance premium of the equipment paid for one year effective from 1 st July 2017 July 12 th 2017 112 Accounts Receivable 3800 400 To Service Revenue 3800 Being amount billed against servicing Fee in account July 18 th 2017 201 Accounts Payable 1000 121 Suppliers Account 400 ... View the full answer