Question: I am having difficulty understanding how to journalize the Owner's equity, classified balance sheet and Journalizing closing entries for the following. Please help. July 1
I am having difficulty understanding how to journalize the Owner's equity, classified balance sheet and Journalizing closing entries for the following. Please help.
| 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. |
| 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 the owner's equity statement for July. (List items that increase owner's equity first.)
| CRANE'S CLEANING SERVICE Owner's Equity Statement choose the accounting period For the Month Ended July 31, 2022July 31, 2022For the Year Ended July 31, 2022 | ||
|---|---|---|
| select an opening name DrawingsExpensesInvestmentsNet Income / (Loss)Owner's Capital, July 1Owner's Capital, July 31RevenuesTotal ExpensesTotal Revenues | $enter a dollar amount | |
| select between addition and deduction AddLess: | ||
| select an item DrawingsExpensesInvestmentsNet Income / (Loss)Owner's Capital, July 1Owner's Capital, July 31RevenuesTotal ExpensesTotal Revenues | $enter a dollar amount | |
| select an item DrawingsExpensesInvestmentsNet Income / (Loss)Owner's Capital, July 1Owner's Capital, July 31RevenuesTotal ExpensesTotal Revenues | enter a dollar amount | |
| enter a subtotal of the two previous amounts | ||
| enter a total amount for the first part | ||
| select between addition and deduction AddLess:select an item DrawingsExpensesInvestmentsNet Income / (Loss)Owner's Capital, July 1Owner's Capital, July 31RevenuesTotal ExpensesTotal Revenues | enter a dollar amount | |
| select a closing name DrawingsExpensesInvestmentsNet Income / (Loss)Owner's Capital, July 1Owner's Capital, July 31RevenuesTotal ExpensesTotal Revenues | $enter a total amount |
(d3)
Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.)
| CRANE'S CLEANING SERVICE Balance Sheet choose the accounting period For the Month Ended July 31, 2022July 31, 2022For the Year Ended July 31, 2022 | |||||
|---|---|---|---|---|---|
| Assets | |||||
| select an opening name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and Equipment | |||||
| enter a balance sheet item | $enter a dollar amount | ||||
| enter a balance sheet item | enter a dollar amount | ||||
| enter a balance sheet item | enter a dollar amount | ||||
| enter a balance sheet item | enter a dollar amount | ||||
| select a closing name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and Equipment | $enter a total amount for subsection one | ||||
| select an opening name for subsection two Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and Equipment | |||||
| enter a balance sheet item | $enter a dollar amount | ||||
| select between addition and deduction AddLess:enter a balance sheet item | enter a dollar amount | enter a subtotal of the two previous amounts | |||
| select a closing section name for this part of the balance sheet Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and Equipment | $enter a total amount for this part of the balance sheet | ||||
| Liabilities and Owner's Equity | |||||
| select an opening subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and Equipment | |||||
| enter a balance sheet item | $enter a dollar amount | ||||
| enter a balance sheet item | enter a dollar amount | ||||
| select a closing subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and Equipment | $enter a total amount for this subsection of the second part of the balance sheet | ||||
| select an opening section name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and Equipment | |||||
| enter a balance sheet item | enter a dollar amount | ||||
| select a closing name for this part of the balance sheet Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentOwner's EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and Equipment | $enter a total amount for this part of the balance sheet |
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