Question

Mike Greenberg opened Novak Window Washing Inc. on July 1, 2017. During July, the following transactions were completed.

1-Jul

Issued 11,300 shares of common stock for $11,300 cash.

1

Purchased used truck for $7,520, paying $1,880 cash and the balance on account.

3

Purchased cleaning supplies for $850 on account.

5

Paid $1,680 cash on a 1-year insurance policy effective July 1.

12

Billed customers $3,480 for cleaning services performed.

18

Paid $940 cash on amount owed on truck and $470 on amount owed on cleaning supplies.

20

Paid $1,880 cash for employee salaries.

21

Collected $1,500 cash from customers billed on July 12.

25

Billed customers $2,350 for cleaning services performed.

31

Paid $270 for maintenance of the truck during month.

31

Declared and paid $560 cash dividend.

The chart of accounts for Novak Window Washing contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, and Salaries and Wages Expense.

Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

DATE

ACCOUNT TITLES

DEBIT

CREDIT

7/1

7/1

7/3

7/5

7/12

7/18

7/20

7/21

7/25

7/31

7/31

Answer 1

	Novak window washing Inc
	Journal entries
Date	Account titles	Debit	credit
Jul-01	cash	$11,300
	common stock		$11,300
	(Being issuance of common stock)
Jul-01	Equipment	$7,520
	cash		$1,880
	Accounts Payable		$5,640
	(Purchase of truck partly by cash partly on account)
Jul-03	Supplies	$850
	Accounts Payable		$850
	(Purchased cleaning supplies on account)
Jul-05	Prepaid insurance	$1,680
	cash		$1,680
	(Paid cash on one year insurance policy)
Jul-12	Accounts receivable	$3,480
	service revenue		$3,480
	(Billed customers for services performed)
Jul-18	Accounts Payable	$1,410
	cash		$1,410
	(940+470)
Jul-20	Salaries and wages expense	$1,880
	cash		$1,880
	(being salaries paid)
Jul-21	Cash	$1,500
	Accounts receivable		$1,500
	(collected cash from billed customers)
Jul-25	Accounts receivable	$2,350
	Service revenue		$2,350
	(Billed customers for services performed)
31-Jul	Repairs and maintainence expense	$270
	cash		$270
	(Amount Paid for Maintainence of truck)
Jul-31	Dividend	$560
	cash		$560
	(Dividend declared and paid)