Question

Please answer Letters G & H only!!!

REQUIRED

a) Journalize and post the August transactions. Use page J1 for the journal.

(b) Prepare a trial balance at August 31. (

c) Journalize and post the adjusting entries. Use page J2 for the journal.

(d) Prepare an adjusted trial balance at August 31.

(e) Prepare the Income Statement and Statement of Owners Equity for August.

(f) Prepare a classified Balance Sheet at August 31, 2018.

(g) Journalize and post the closing entries. Use page J3 for the journal.

(h) Prepare a post-closing trial balance at August 31. Joshua Sand opened Sunshine Cleaning Service on August 1, 2018.

During August, the company completed the following transactions: Aug 1 Owner Joshua Sand invested $40,000 cash and $6,800 of cleaning equipment in the business. 1 Purchased a used truck for $12,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,475 on account. 5 Paid $1,800 on a one-year insurance policy, effective August 1. 12 Billed customers $5,982 for cleaning services. 18 Paid $1,500 of amount owed on truck. 19 Paid $475 of amount owed for cleaning supplies. 20 Paid $1,025 for employee salaries. 21 Collected $4,225 from customers billed on August 12. 25 Billed customers $4,075 for cleaning services. 31 Paid gasoline for the month on the truck, $215. 31 Owner Joshua Sand withdrew $1,100 for personal use. Adjustments: Aug 31 Earned but unbilled fees at August 31 were $2,875. Depreciation on truck for the month was $250. One-twelfth of the insurance expired. An inventory count shows $625 of cleaning supplies on hand at August 31. Accrued but unpaid employee salaries were $695.

Answer 1

	Journal Entries					T-accounts
date	explanation	debit	credit
1-Aug	cash	40000				cash
	equipment	6800			owners capital	40000	truck	3000
	owner capital		46800		accounts receivables	4075	prepaid insurance	1800
							accounts payable	1500
1-Aug	truck	12000					accounts payable	475
	cash		3000				salary expense	1025
	accounts payable		9000				gasoline expense	215
							drawings	1100
3-Aug	supplies	1475					balance	34960
	accounts payable		1475
5-Aug	prepaid insurance	1800
	cash		1800			equipment
					owner capital	6800	balance	6800
12-Aug	accounsts receivables	5982
	revenue earned		5982
						owners capital
18-Aug	accounts payable	1500			balance	46800	cash	40000
	cash		1500				equipment	6800
19-Aug	accounts payable	475
	cash		475			truck
					cash	3000	balance	12000
20-Aug	salaries expense	1025			accounts payable	9000
	cash		1025
						accounts payable
21-Aug	cash	4225			cash	1500	truck	9000
	accounts receivables		4225		cash	475	supplies	1475
					balance	8500
25-Aug	accounts receivables	4025				supplies
	revenue earned		4025		accounts payable	1475	supplies expense	850
							balance	625
31-Aug	gasoline expense	215
	cash		215			prepaid insurance
					cash	1800	insurance expense	150
31-Aug	drawings	1100					balance	1650
	cash		1100
						accounts receivables
Adjustment Entries					revenue earned	5982	cash	4075
31-Aug	accounts receivables	2875			revenue earned	4025	balance	8807
	revenue earned		2875		revenue earned	2875
						revenue earned
31-Aug	depreciation expense	250			income summary	12882	accounts receivables	5982
	accumulated depreciation		250				accounts receivables	4025
							revenue earned	2875
31-Aug	insurance expense	150
	prepaid insurance		150
						salary expense
31-Aug	supplies expense	850			cash	1025	income summary	1720
	supplies		850		salary payble	695
						gasoline expense
31-Aug	salary expense	695			cash	215	income summary	215
	salaries payable		695
						drawings
	adjusted trial balance				cash	1100	income summary	1100
explanation	Debit	credit
cash	34960					depreciation expense
equipment	6800				accumulated depreciation	250	income summary	250
truck	12000
supplies	625					accumulated depreciation
prepaid insurance	1650				balance	250	depreciation expense	250
accounts receivables	8807
accounts payable		8500				insurance expense
salaries payable		695			prepaid insurance	150	income summary	150
accumulated depreciation		250
owners capital		46800				supplies expense
revenue earned		12882			supplies	850	income summary	850
salary expense	1720
gasoline expense	215					salaries payable
depreciation expense	250				balance	695	salaries expense	695
insurance expense	150
supplies expense	850
drawings	1100
total	69127	69127
income statement				balance sheet
revenue earned		12882		assets
less expenses				cash	34960
salary expense	1720			equipment	6800
gasoline expense	215			truck net off accumulated depreciation	11750
depreciation expense	250			supplies	625
insurance expense	150			prepaid insurance	1650
supplies expense	850			accounts receivables	8807
total expenses		3185		total of assets		64592
net income		9697
				liabilities and shareholders equity
statement of retained earning				accounts payable	8500
owners capital		46800		salaries payable	695
add net income		9697		owners capital	55397
less drawings		1100		total of liabilities and shareholders equity		64592
year end balance		55397