Patrick opened Patricks Window Washing on July 1, 2019. During July the following transactions

were completed:

July 1 Patrick invested $20,000 cash in exchange for stock of the business.

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

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

5 Paid $1,200 cash on one-year insurance policy effective July 1.

6 Purchased 20 bottles of window washing detergent from Coal Company for Patricks inventory for $10/bottle, 2/10 n30.

12 Billed customers $2,500 for cleaning services.

13 Goat company purchased 10 bottles of window washing detergent for $20 per bottle, 1/5 n30 .

14 Paid Coal Company in full.

18 Paid $1,000 cash on amount owed on truck and $800 on amount owed on cleaning supplies.

19 Received payment from Goat company.

20 Paid $1,200 cash for employee salaries.

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

25 Billed customers $3,000 for cleaning services.

31 Paid gas and oil for month on truck $200.

31 Paid Dividends of $900.

Instructions

1. Journalize and post the July transactions
2. Prepare a trial balance at July 31 on a work sheet.
3. Enter the following adjustments and post to general ledger. (1) Services provided but unbilled and uncollected at July 31 were $1,500.

   1. (2) Depreciation on equipment for the month was $200.

      (3) One-twelfth of the insurance expired.

      (4) An inventory count shows $600 of cleaning supplies on hand at July 31.

      (5) Accrued but unpaid employee salaries were $600 Prepare the multistep income statement and statement of Retained Earnings for July and a classified balance sheet at July 31