Comprehensive Problem (Problem info and working papers) Bob opened Bob's Plumbing on July 01, 2020. During July the company completed these transactions. July 01 Bob invested $14,000 cash into the business in exchange for common stock. 02 Bought a used truck for $10,000 paying $3,000 in cash with the balance on account 03 Bought plumbing supplies for $800 on account. 05 Paid $1,800 on a 1-year insurance policy, effective July 01. 12 Billed customers for $3,800 for plumbing services. 18 Paid $1,000 of amount owed on the truck AND % of the amount owed on plumbing supplies. 20 Paid $1,000 for employee salaries. 21 Collected $1,400 from customers previously billed on July 12. 25 Billed customers $1,500 for plumbing services 30 Paid gasoline for the month on the truck, $400. 31 Declared and pald a $600 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: (a) Journalize AND Post the July transactions. (b) Prepare a (TB) Trial Balance at July 31 on a worksheet... (Completed for you!) (Hint... venty that YOUR posting S amounts "add up to this correct TB.If your numbers don't match the TB... FIX your joumal entries (and then post and 're-check!) (c) Enter the following adjustments, AND total the ADJ columns, on the worksheet. (1) Unbilled fees for services performed at July 31 were $1,300. (2) Depreciation on the Truck for the month was $200. (3) One month (July) of the 1-year insurance policy was used up. (4) An inventory count shows that $100 of plumbing supplies remains unused as of July 31. (5) Accrued, but unpaid. employee salaries were $500. FYI: (ADJ Cols total = $2,850) If not-redo! (d) Complete, including totals, the INC ST and BAL SHT columns of the worksheet. (e) Prepare the financial statements. (1) Journalize AND POST the Adjusting entries. (g) Journalize AND POST the closing entries. Comprehensive Problem... Working Papers (a) General Journal Date July 1 Account Tities and Explanation 2 3 5 12 12 18 20 21 25 30 31 Debit Credit Comprehensive Problem (Problem info and working papers) Bob opened Bob's Plumbing on July 01, 2020. During July the company completed these transactions. July 01 Bob invested $14,000 cash into the business in exchange for common stock. 02 Bought a used truck for $10,000 paying $3,000 in cash with the balance on account 03 Bought plumbing supplies for $800 on account. 05 Paid $1,800 on a 1-year insurance policy, effective July 01. 12 Billed customers for $3,800 for plumbing services. 18 Paid $1,000 of amount owed on the truck AND % of the amount owed on plumbing supplies. 20 Paid $1,000 for employee salaries. 21 Collected $1,400 from customers previously billed on July 12. 25 Billed customers $1,500 for plumbing services 30 Paid gasoline for the month on the truck, $400. 31 Declared and pald a $600 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: (a) Journalize AND Post the July transactions. (b) Prepare a (TB) Trial Balance at July 31 on a worksheet... (Completed for you!) (Hint... venty that YOUR posting S amounts "add up to this correct TB.If your numbers don't match the TB... FIX your joumal entries (and then post and 're-check!) (c) Enter the following adjustments, AND total the ADJ columns, on the worksheet. (1) Unbilled fees for services performed at July 31 were $1,300. (2) Depreciation on the Truck for the month was $200. (3) One month (July) of the 1-year insurance policy was used up. (4) An inventory count shows that $100 of plumbing supplies remains unused as of July 31. (5) Accrued, but unpaid. employee salaries were $500. FYI: (ADJ Cols total = $2,850) If not-redo! (d) Complete, including totals, the INC ST and BAL SHT columns of the worksheet. (e) Prepare the financial statements. (1) Journalize AND POST the Adjusting entries. (g) Journalize AND POST the closing entries. Depreciation Expense - Truck Date Adj Debit Credit Clo Balance Salaries Expense Date July 20 Adj Insurance Expense Clo Dat Dabil Cad Balance Adj Cla Debit Credit Ba Instructors Note: I completed instruction (b) and provided other column totals to help you. FYI: If the Trial Ba amounts (below) equal YOUR ending balances (of each account that you posted)-then your journal entries are probably correct If your posted account balances are different than the Trial Balance amounts below-there is probably an error in one (or more) of your journal entries. Find it. Fix it. (b), (c), (d) Bob's Plumbing Inc. Worksheet For the Month Ended July 31, 2020 Account Tide Trial Balance Adjustments Income Statement Balance Sheet Debut Credit Dub Crech Debit Credde Debit Cre Cash 6,600 Accts Recble 3,900 Supplies 800 Prepaid Ins. 1,000 Truck 10,000 Accts Payable Common Stock 6,400 14,000 Dividends 600 Service Revenue 5,300 Gasoline Expense 400 Salaries Expense 1,600 Totals 25,700 25,700 Depreciation Exp Ace Depr-Truck Insurance Expense Supplies Expense Salaries Payable Totals Net Income Totals 6,600 6,600 24,150 24,150 Instructors Note: Trial Balance and adjustment columns should balance (VERIFY by adding them up). However, the debit & credit columns of the INC ST columns (and the BAL SHT cols), will NOT be equal until you "plug in" the Net Income (Rev- Exp) in the appropriate column. Instructors Tip: On the worksheet, account and amount are in EITHER an Income Statement column OR a balance sheet column-NOT BOTH. (For each account - make sure you combine the Trial Balance col amount with the Adjustment col amount. THEN-copy those account balances into the appropriate INC ST col... OR... BAL SHT col). Instructors Tip: The "" indicate a space without any amounts. (e) Revenues: Bob's Plumbing Inc Income Statement For the Month Ended July 31, 2017 Expenses: Total Expenses Net Income JODLOGE Completed for you (you may need an amount from this for the CLASSIFIED Balance Sheet) Bob's Plumbing Service Statement of Changes in Stockholders Equity For the Month Ended, July 31 Retained Earnings, July 1(beginning) 0 Add: Net Income 3,050 Less: Dividends 600 Retained Earnings, July 31 (ending) 2,450 (e) Current Assets: Bob's Plumbing Service Classified Balance Sheet July 31, 2017 Assets 0000XX xxxxx XXXXXX XXX Total Current Assets XXXXXX Property Plant and Equipment: Total Property Plant & Equipment Total Assets Liabilities and Stockholders' Equity Current Liabilities: Total Current Liabilities Stockholders Equity: Total Stockholders Equity Total Liability & Equity MORE BELOW 2000XXX xxxxxx xxxxxxx X0000XX XXXXXX XXXXXX 1000000 Instruction (f) ... Journalize and Post Adjusting Entries Date July 31 (1) July 31 (2) July 31 (3) July 31 (4) July 31 (5) Account Titles and Explanation Debit Credit Instruction (g) ... Journalize and Post Closing Entries Date July 31 Account Titles and Explanation (1) July 31 (2) July 31 (3) July 31 (4) Debit Credit