Question

New Era Cleaning Service, Inc. opened for business on July 1, 2010. During the month of July, the following transactions occurred:
July 1: Issued $18,000 of common stock for $18,000 cash
July 1: Purchased a truck for $11,000. Paid $4,000 in cash and borrowed the remainder (long term) from the bank.
July 3: Purchased cleaning supplies for $900 on account.
July 5: Paid $1,800 on a one-year insurance policy, effective July 1.
July 12: Billed customers $4,800 for cleaning services.
July 18: Paid $1,500 of the amount owed on the truck.
July 18: Paid $500 of the amount owed on cleaning services.

July 20: Paid $1,700 for employee salaries.

July 21: Collected $1,200 from customers billed on July 12.

July 25: Billed customers $1,900 for cleaning services.

July 31: Paid gas and oil for the month on the truck, $500.

July 31: Paid a $800 dividend.

Please complete the following tasks:
Post the July transactions to the general journal and the general ledger "T" accounts.

General journal

Journal #	Date	Accounts and Description		Debit	Credit
		Debit	Credit

(#1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12)

Adjusting entries:

(a) (b) (c) (d) (e)

General Ledger - T Accounts

Cash			Accounts Receivable			Pre-Paid Insurance			Supplies
Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Equipment: Truck			Accum. Depreciation			Accounts Payable			Bank Loan
Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Salaries Payable			Revenue			Gas & Oil Expense			Salaries Expense
Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Insurance Expense			Supplies Expense			Depreciation Expense			Income Summary
Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Common Stock			Dividend			Retained Earnings
Debit	Credit		Debit	Credit		Debit	Credit

Answer 1

General journal:
Date	Accounts and description					Debit	Credit
July 1.	Cash					18000
	Common Stock						18000
	(Issued common stock for cash)
July 1.	Equipment: Truck					11000
	Cash						4000
	long term loan				(Plug)		7000
	(Truck purchased)
July 3.	Supplies					900
	Accounts payable						900
	(Cleaning supplies purchased on account)
July 5.	Prepaid insurance					1800
	Cash						1800
	(Paid a one-year insurance policy)
July 12.	Accounts receivable					4800
	Service revenue						4800
	(Billed customers)
July 18.	long term loan					1500
	Cash						1500
	(Paid the amount owed on the truck)
July 18.	Accounts payable					500
	Cash						500
	(Paid for cleaning services)
July 20.	Salaries & wages expense					1700
	Cash						1700
	(Salaries paid)
July 21.	Cash					1200
	Accounts receivable						1200
	(Collected from customers billed)
July 25.	Accounts receivable					1900
	Service revenue						1900
	(Billed customers)
July 31.	Gas & Oil expenses					500
	Cash						500
	(Paid gas and oil)
July 31.	Dividend					800
	Cash						800
	(Paid dividend)
General ledger:
	Cash					Supplies
Date	Debit	Date	Credit		Date	Debit	Date	Credit
July 1.	18000	July 1.	4000		July 3.	900
July 21.	1200	July 5.	1800
		July 18.	1500
		July 18.	500
		July 20.	1700
		July 31.	500
		July 31.	800
	19200		10800
Bal.	8400