Question

Heidi Jara opened Jara's Cleaning Service on July 1, 2017. During July, the following transactions were completed. July  1 Stockholders invested $20,000 cash in the business in exchange for common stock. 1 Purchased used truck for $9,000, paying $4,000 cash and the balance on account. 3 Purchased cleaning supplies for $2,100 on account. 5 Paid $1,800 cash on a 1-year insurance policy effective July 1. 12 Billed customers $4,500 for cleaning services. 18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies. 20 Paid $2,500 cash for employee salaries. 21 Collected $3,400 cash from customers billed on July 12. 25 Billed customers $6,000 for cleaning services. 31 Paid $350 for the monthly gasoline bill for the truck. 31 Paid a $5,600 cash dividend. The chart of accounts for Jara's 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 Accumulated Depreciation—Equipment, No. 201 Accounts 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 Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. Instructions (a) Journalize and post the July transactions using the general journal tab in Excel (b) Prepare a trial balance at July 31 using the trial balance tab in Excel (b) Trial balance $34,700 (c) Journalize and post the following adjusting entries using the general journal for adjustments tab in Excel. Prepare an adjusted trial balance using the adjusted trial balance tab in Excel. 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 $600 of cleaning supplies on hand at July 31. 5. Accrued but unpaid employee salaries were $1,000. (c) Adjusted trial balance $38,900 (d) Prepare an income statement and a retained earnings statement for July and a classified balance sheet at July 31, using the financial statements tab in Excel. (d) Net income $7,200 Total assets $26,800 (e) Journalize and post closing entries using the general journal for closing ent tab in Excel. (g) Prepare a post-closing trial balance at July 31 using the post closing trial balance tab in Excel. (g) Post-closing trial balance $27,300

I need help with the income statement after the adjusting entries are made. I am not getting what my professor says i'm suppose to and cant not figure out why.

Answer 1