Comprehensive Problem

Instructions:

1. Journalize and post the January transactions
2. Prepare a Trial Balance
3. Journalize and post the adjusting entries
4. Prepare a post-adjusting Trial Balance
5. Prepare an Income Statement, Statement of Owners Equity, and Balance Sheet
6. Journalize and post the closing entries
7. Prepare Post-Closing Trial Balance

EGS Cleaning Service

Jan 1 Owner Invested $50,000

1 Purchased a truck from Ford for $11,000, paying $2000 down and the balance on account

2 Purchased cleaning supplies on account from Lowes $600

3 Paid $1500 on one-year insurance policy effective January 1

3 Purchased cleaning equipment on account from Home Depot - $6000

10 Billed customer $4000 for cleaning services

10 Paid rent for first three months (Jan, Feb, March) - $ 1,800

15 Paid $600 on truck (1) and $300 on supplies

18 Paid $500 in salaries

20 Collected $2000 from billed customer (10)

22 Provide a cleaning service for $2200 Customer paid half now and was billed for remainder

25 Paid Power bill $200

28 Owner withdrew $300 cash

Adjusting:

31 Earned but unbilled fees for services $1,500

31 Depreciation on the truck $500 for the year

31 Depreciation on the equipment $1000 for the year

31 1/12 of insurance expired

31 1/3 of rent expired

31 Inventory count shows $100 in supplies on hand

31 Salaries earned but not yet paid $300

Chart of Accounts

100	Cash
101	Accounts Receivable
102	Cleaning Supplies
103	Prepaid Insurance
104	Truck
104.5	Accumulated Depreciation - Truck
105	Cleaning Equipment
105.5	Accumulated Depreciation Equipment
201	Accounts Payable Lowes
202	Accounts Payable Home Depot
203	Accounts Payable - Ford
204	Salaries Payable
301	EGS, Capital
302	EGS, Drawing
350	Income Summary
401	Service Revenue
501	Utilities Expense
502	Rent Expense
503	Insurance Expense