Question

Crane Clark opened Crane’s Cleaning Service on July 1, 2020. During July, the following transactions were completed.

July 1		Crane invested $19,900 cash in the business.
1		Purchased used truck for $8,800, paying $3,900 cash and the balance on account.
3		Purchased cleaning supplies for $2,000 on account.
5		Paid $1,800 cash on 1-year insurance policy effective July 1.
12		Billed customers $4,500 for cleaning services.
18		Paid $1,600 cash on amount owed on truck and $1,500 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		Withdraw $5,600 cash for personal use. Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet. (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 $1,010.

Answer 1