Question

I am trying to adjust my trial balance for the opening businessSandhill Clark opened Sandhill’s Cleaning Service on July 1, 2022. During July, the following transactions were completed.

July 1		Sandhill invested $20,000 cash in the business.
1		Purchased used equipment for $9,000, paying $4,100 cash and the balance on account.
3		Purchased cleaning supplies for $2,000 on account.
5		Paid $1,800 cash on a 1-year insurance policy effective July 1.
12		Billed customers $4,400 for cleaning services.
18		Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies.
20		Paid $2,500 cash for employee salaries.
21		Collected $3,500 cash from customers billed on July 12.
25		Billed customers $6,100 for cleaning services.
31		Paid $360 for monthly utilitiy bill for the equipment. (Use Utilities Expense.)
31		Withdraw $5,700 cash for personal use.

Answer 1

Answer: Journal entries

Date	Particulars	Amount dr.	Amount Cr.
1 july	Equipment A/cc Dr.	$9,000
	To Cash		$4,100
	To Party Name		$4900
	(Being Equipment Purchase $9,000Cash Payment of $4100 remaining pending.)
3 july	Purchase a/cc dr.	$2,000
	To Party name		$2,000
	(Being Purchased cleaning supplies for $2,000 on account)
5 July	Insurance A/cc Dr.	$900
	Prepaid Insurance Exp. A/cc Dr.	$900
	To Cash		$1,800
	(Being Insurance Policy taken for 1 year from July )
12 July	Customer A/cc Dr.	$4,400
	To Sales		$4,400
	(Being Billed to customer $4,400)
18 jULY	Drawing A/cc dr.	$2,900
	To Cash		$2,900
	(Being Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies.)
20 July	Salary a/cc Dr.	$2,500
	To Profit and Loss		$2,500
	(Being Paid $2,500 cash for employee salaries)
21 July	Cash a/cc dr.	$3,500
	To Customer		$3,500
	(BeingCollected $3,500 cash from customers billed on July 12.)
25 July	Customer A/cc Dr.	$6,100
	To Sales		$6,100
	( Being Billed customers $6,100 for cleaning services.)
31. July	Utilities Expense A/cc Dr.	$360
	To Cash		$360
	(Being Paid $360 for monthly utilitiy bill for the equipment)
31 July	Drawing A/cc Dr.	$5,700
	To Cash A/cc		$5,700
	(Being Withdraw $5,700 cash for personal use.)