Question: I am having difficulty completing this. Please help me understand. Crane Clark opened Crane's Cleaning Service on July 1, 2022. During July, the following transactions
I am having difficulty completing this. Please help me understand.
Crane Clark opened Crane's Cleaning Service on July 1, 2022. During July, the following transactions were completed.
| July 1 | Crane invested $19,900cash in the business. | |
| 1 | Purchased used truck for $8,800, paying $3,900cash and the balance on account. | |
| 3 | Purchased cleaning supplies for $2,000on account. | |
| 5 | Paid $1,800cash on a 1-year insurance policy effective July 1. | |
| 12 | Billed customers $4,500for cleaning services. | |
| 18 | Paid $1,600cash on amount owed on truck and $1,500on amount owed on cleaning supplies. | |
| 20 | Paid $2,500cash for employee salaries. | |
| 21 | Collected $3,400cash from customers billed on July 12. | |
| 25 | Billed customers $6,000for cleaning services. | |
| 31 | Paid $350 for the monthly gasoline bill for the truck. | |
| 31 | Withdraw $5,600cash for personal use. |
Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet.
| (1) | Unbilled and uncollected revenue for services performed at July 31 were $2,700. | |
| (2) | Depreciation on equipment for the month was $500. | |
| (3) | One-twelfth of the insurance expired. | |
| (4) | An inventory count shows $600of cleaning supplies on hand at July 31. | |
| (5) | Accrued but unpaid employee salaries were $1,010. |
| CRANE'S CLEANING SERVICE Worksheet choose the accounting period For the Month Ended July 31, 2022July 31, 2022For the Year Ended July 31, 2022 | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Trial Balance | Adjustments | Adjusted Trial Balance | Income Statement | Balance Sheet | ||||||||||||||||
| Account Titles | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||||||||||
| Cash | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Accounts Receivable | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Supplies | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Prepaid Insurance | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Equipment | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Accounts Payable | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Owner's Capital | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Owner's Drawings | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Service Revenue | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Gasoline Expense | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Salaries and Wages Expense | enter a debit amount | enter a credit amount | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||
| Totals | $enter a total for the debit column | $enter a total for the credit column | ||||||||||||||||||
| Depreciation Expense | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||||
| Accum. Depr.Equipment | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||||
| Insurance Expense | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||||
| Supplies Expense | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||||
| Salaries and Wages Payable | enter a debit amount | enter a credit amount | enter an adjusted debit balance | enter an adjusted credit balance | enter a debit amount | enter a credit amount | enter a debit balance | enter a credit balance | ||||||||||||
| Totals | enter a total for the debit column | enter a total for the credit column | enter a total for the debit column | enter a total for the credit column | enter a total for the debit column | enter a total for the credit column | enter a total for the debit column | enter a total for the credit column | ||||||||||||
| Net Income | enter a total net income or loss amount | enter a total net income or loss amount | enter a total net income or loss amount | enter a total net income or loss amount | ||||||||||||||||
| Totals |
Prepare the income statement for July. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| CRANE'S CLEANING SERVICE Income Statement choose the accounting period For the Year Ended July 31, 2022For the Month Ended July 31, 2022July 31, 2022 | ||
|---|---|---|
| select an opening name for section one DrawingsExpensesInvestmentsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31RevenuesTotal ExpensesTotal Revenues | ||
| enter an income statement item | $enter a dollar amount | |
| select an opening name for section two DrawingsExpensesInvestmentsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31RevenuesTotal ExpensesTotal Revenues | ||
| enter an income statement item | $enter a dollar amount | |
| enter an income statement item | enter a dollar amount | |
| enter an income statement item | enter a dollar amount | |
| enter an income statement item | enter a dollar amount | |
| enter an income statement item | enter a dollar amount | |
| select a closing name for section two DrawingsExpensesInvestmentsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31RevenuesTotal ExpensesTotal Revenues | enter a total amount for section two | |
| select a closing name for this statement DrawingsExpensesInvestmentsNet Income / (Loss)Owner's Capital, March 1Owner's Capital, March 31RevenuesTotal ExpensesTotal Revenues | $enter a total net income or loss amount |
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