adjusted trial balance. Betty Higgins started Bettys Cleaning Service on July $1.$ The following transactions occurred during Year $1$:

July $1$Invested $$20,000$ cash in the business.

July $1$Purchased a used truck for $$25,000,$ paying $$5,000$ cash and borrowing $$20,000$ by signing a note payable due in June, Year $2.$

July $1$Paid $$2,800$ for a $1-$year insurance policy starting July $1.$

July $5$Billed customers $$3,300$ for cleaning services.

July $12$Purchased supplies on account for $$2,100.$

July $18$Paid employees salaries of $$3,000.$

July $25$Billed customers $ $8,900$ for cleaning services.

July $28$Collected $$3,300$ cash from the July $5$ billing.

July $31$Paid $$550$ for truck repairs.

July $31$Withdrew $$2,600$ cash for personal use.

Use the following chart of account numbers:

Cash #$1100$

Accounts Receivable #$1200$

Supplies #$1300$

Prepaid Insurance # $1400$

Vehicles #$1500$

Accumulated Depreciation, Vehicles #$1600$

Accounts Payable #$2100$

Salaries Payable # $2200$

Interest Payable # $2300$

Note Payable # $2400$

Betty Higgins, Capital #$3100$

Betty Higgins, Withdrawals #$3200$

Income Summary # $3300$

Service Revenue #$4100$

Depreciation Expense # $5100$

Repairs Expense # $5200$

Insurance Expense # $5300$

Interest Expense # $5400$

Salaries Expense # $5500$

Supplies Expense # $5600$

Legal Fees Expense #$5300$

Required

a$.$ Journalize the July transactions and post them to the ledger accounts.

b$.$ Prepare a trial balance for July $31,$ Year $1.$

c$.$ Journalize and post the following July adjustments:

On July $31,$ Betty provided $$1,500$ worth of services that had not yet been recorded.

The truck has an estimated life of $5$ years and no residual value.

Insurance for $1$ month has expired.

Supplies on hand on July $31$ are $$700.$

Employees have earned $$800,$ and it will be paid in August.

The note payable has an annual rate of $5\mathrm{.}5\%.$

d$.$ Prepare an adjusted trial balance.

e$.$ Prepare $($i$)$ an income statement, $($ii$)$ a statement of owners equity, and $($iii$)$ a classified balance sheet for the month of July.

f$.$ Journalize and post the closing entries.

g$.$ Prepare a post$-$closing trial balance.

h$.$ Complete the appropriate ledger accounts.

Note: Please leave one empty row between each journal entry. Also, dont use cents; round up$/$down$.$

Answer rating: 100% (QA)

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