Print Assignment: Spring 2016 Comp. Assignment ::false - Google Chrome edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?titleType=false Description / Instructions: This assignment is similar to the comprehensive problem CP 4 on page 196 & 197 in your text. Comprehensive Problem 4 Kristin Malone opened Kristin s Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions. July 1 Stockholders invested $15,000 cash in the business in exchange for common stock. 1 Purchased a used truck for $10,000, paying $2,700 cash and the balance on account. 3 Purchased cleaning supplies for $700 on account. 5 Paid $2,136 on a 1-year insurance policy, effective July 1. 12 Billed customers $3,900 for cleaning services. 18 Paid $1,200 of amount owed on truck, and $280 of amount owed on cleaning supplies. 20 Paid $1,500 for employee salaries. Collected $1,700 from customers billed on July 12. 21 25 Billed customers $1,500 for cleaning services. 31 Paid gasoline for the month on the truck, $300. 31 Declared and paid a $700 cash dividend. The chart of accounts for Kristin s Maids Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumula Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline E Insurance Expense, and No. 726 Salaries and Wages Expense. Journalize the July transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date e (To record cash invested in the business.) W Debit 0 X Credit X 7:29 AM 4/7/2016 Print Assignment: Spring 2016 Comp. Assignment :false - Google Chrome edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?titleType=false (To record dividend.) Post the July transactions. (Post entries in the order of journal entries presented above.) Cash Date Accounts Receivable Supplies (To record gasoline expense.) Date Explanation Ref 31 31 31 31 31 J1 31 J1 Explanation Ref 31 31 J1 Debit Debit 00 Q W Credit Credit No. 101 Balance No. 112 Balance No. 126 0 7:35 AM 4/7/2016 Print Assignment: Spring 2016 Comp. Assignment :false - Google Chrome edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?titleType=false (b) (c) Date (2) (3) One-twelfth of the insurance expired. Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet, and complete the worksheet. (1) Unbilled fees for services performed at July 31 were $1,500. Depreciation on equipment for the month was $270. Account Titles Explanation Ref J1 Cash Accounts Receivable Supplies Prepaid Insurance (4) An inventory count shows $300 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $400. Equipment Accounts Payable Common Stock Dividends Service Revenue Gasoline Expense Debit Salarioc and Wanoc Evnen.co Dr. Trial Balance OG Credit Cr. W Dr. X Balance Adjustments KRISTIN S MAIDS CLEANING SERVICE Cr. Worksheet Adjusted Trial Balance Dr. Cr. Q X Income Statement Dr. Cr. 7:36 AM 4/7/2016 Print Assignment: Spring 2016 Comp. Assignment ::false - Google Chrome edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?titleType=false Prepare the income statement for July 31, 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) KRISTIN S MAIDS CLEANING SERVICE Income Statement Prepare the retained earnings statement for July 31, 2017. (List items that will increase retained earnings first.) KRISTIN S MAIDS CLEANING SERVICE Retained Earnings Statement 00 W i 0 7:36 AM 4/7/2016 Print Assignment: Spring 2016 Comp. Assignment :false - Google Chrome edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?titleType=false Prepare a classified balance sheet at July 31, 2017. (List current assets in order of liquidity.) KRISTIN S MAIDS CLEANING SERVICE Balance Sheet E Assets Liabilities and Stockholders Equity W 0 7:36 AM 4/7/2016 Print Assignment: Spring 2016 Comp. Assignment :false - Google Chrome edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?titleType=false Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. 2. 3. 4. 5. Cash Post the adjusting entries. (Post entries in the order of journal entries passed above.) July 1 July 1 July 5 July 18 July 20 July 21 Date e Explanation Ref ====== O Debit J1 OG Debit 15,000 Credit 1,700 W Credit MJ 2,700 2,136 1,480 1,500 No. 101 Balance 15,000 12,300 10,164 8,684 7,184 8,884 Q X 7:37 AM 4/7/2016 Print Assignment: Spring 2016 Comp. Assignment :false - Google Chrome edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?titleType=false Salaries and Wages Expense Date July 20 (To close revenue account.) Explanation Ref J1 Adjusting (To close expense accounts.) (To close dividends.) (To close net income / (loss).) J2 Debit Debit Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation 1,500 00 Credit Credit No. 726 W Balance 1,500 Doct the clocina entries and complete the closing prorece (Doct antriac in the order of journal entrioc nraconted above) 0 7:37 AM 4/7/2016 Print Assignment: Spring 2016 Comp. Assignment :false - Google Chrome edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?titleType=false Post the closing entries and complete the closing process. (Post entries in the order of journal entries presented above.) Cash July 1 July 1 July 5 July 18. July 20 July 21 July 31 July 31 Accounts Receivable Date July 12. July 21 July 25 July 31 Supplies Date Date July 3 July 31 Prepaid Insurance Date July 5 July 31 Equipment July 31 Date Date e Explanation Ref A Adjusting Adjusting July 1 Accumulated Depreciation Equipment ============ Adjusting J1 J1 J1 J1 Explanation Ref J1 O J1 J1 J1 J1 Explanation Ref J1 J2 J1 J1 Explanation Ref J1 J2 J2 Explanation Ref J1 Explanation Ref Adjusting 32 Oc Debit Debit Debit Debit Debit Debit 15,000 1,700 3,900 1,500 1,500 700 2,136 10,000 W Credit Credit Credit Credit Credit Credit 2,700 2,136 1,480 1,500 300 700 1,700 400 178 270 X No. 101 Balance 15,000 12,300 10,164 8,684 7,184 8,884 8,584 7,884 No. 112 Balance 3,900 2,200 3,700 5,200 No. 126 Balance 700 300 No. 130 Balance 2,136 1,958 No. 157 Balance 10,000 No. 158 Balance 270 Q X 7:37 AM 4/7/2016 Print Assignment: Spring 2016 Comp. Assignment :false - Google Chrome edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?titleType=false Salaries and Wages Expense Date July 20 July 31 Totals Explanation Ref J1 J2 J3 Prepare a post-closing trial balance at July 31. E Adjusting Closing KRISTIN S MAIDS CLEANING SERVICE Post-Closing Trial Balance Debit Debit Oc 1,500 400 Credit W Credit No. 726 Balance Vi 1,500 1,900 0 7:38 AM 4/7/2016