Question

Problem 4-05A a-g (Part Level Submission) (Video) 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. (g) Prepare a post-closing trial balance at July 31.

Answer 1

Post Cloing Trial Balance at July 31
Particulars		Debit		Credit				Cash
Cash	$	6050	$					19900-1800-3900-1500-1600+3400-350-5600-2500
Cleaning Supplies		2000
Truck		8800
Accounts Payable				3800
Accounts receivable		9800
Common Stock				14300
Prepaid Insurance Expenses		1650
cleaning Service revenue				13200
Insurance Expenses		150
Depreciation		500
Accumulated Depreciation				500
Salary Expenses		3510
Salary Payable				1010
Gasoline Expense		350
	$	32810	$	32810