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.