Comprehensive Problem $($Problem info and working papers$)$

Bob opened Bob$$s Cleaning Services on July $01,2022.$ During July the company completed these transactions.

July $01$ Bob invested $$12,000$ cash in the business

$02$ Purchased used truck for $$6,000,$ paying $$3,000$ cash and the balance on account.

$03$ Purchased cleaning supplies for $$1,300$ on account.

$05$ Paid $$2,400$ cash on one$-$year insurance policy effective July $1.$

$12$ Billed customers for $$2,500$ for cleaning services.

$18$ Paid $$1,000$ of amount owed on truck AND $$800$ of the amount owed on cleaning supplies.

$20$ Paid $$1,200$ for employee salaries.

$21$ Collected $$1,400$ from customers previously billed on July $12.$

$25$ Billed customers $$7,000$ for cleaning services.

$30$ Paid gasoline for the month on the truck, $$200.$

$31$ Declared and paid a $$900$ cash dividend.

Use this $$Chart of Accounts$$: Cash; Account Receivable; Supplies; Prepaid Insurance; Truck; Accumulated Depreciation$-$Truck; Accounts Payable; Salaries Payable; Common Stock; Retained Earnings; Dividends; Income Summary; Service Revenue; Supplies Expense; Gasoline Expense; Depreciation Expense; Insurance Expense; Salaries Expense.

Instructions:

$($c$1)$ Unbilled and uncollected revenues for services performed at July $31$ were $$1,500.$

$($c$2)$ Depreciation on the Truck for the month was $$300.$

$($c$3)$ One month $($July$)$ of the $1-$year insurance policy was used up$.$

$($c$4)$ An inventory count shows that $$400$ of cleaning supplies remains unused as of July $31.$

$($c$5)$ Accrued, but unpaid, employee salaries were $$600.$

$($e$)$ Prepare the Income Statement and a Classified Balance Sheet.

$($f$)$ Journalize AND POST the Adjusting entries.

$($g$)$ Journalize AND POST the Closing entries.

$($h$)$ Prepare a Post$-$Closing Trial Balance.Account Title Trial Balance Adjustments Income Statement Balance

Sheet

Debit Credit Debit Credit Debit Credit Debit Credit

Cash $3,9003,900$

Accts Recble $8,1001,5009,600$

Supplies $1,300900400$

Prepaid Ins. $2,4002002,200$

Truck $6,0006,000$

Accts Payable $2,5002,500$

Common Stock $12,00012,000$

Dividends $900-900$

Service Revenue $9,5001,50011,000$

Gasoline Expense $200200$

Salaries Expense $1,2006001,800$

Totals $24,00024,000$

Depreciation Exp $300300$

Acc Depr $$ Truck $300-300$

Insurance Expense $200200$

Supplies Expense $900900$

Salaries Payable $600600$

Totals $3,5003,5003,40011,00021,80014,200$

Net Income $7,6007,600$

Totals $11,00011,00021,80021,800$