Question

Patrick opened Patrick’s Window Washing on July 1, 2019. During July the following transactions

were completed:

July 1 Patrick invested $20,000 cash in exchange for stock of the business.

1 Purchased used truck for $6,000, paying $3,000 cash and the balance on account.

3 Purchased cleaning supplies for $1,300 on account.

5 Paid $1,200 cash on one-year insurance policy effective July 1.

6 Purchased 20 bottles of window washing detergent from Coal Company for Patrick’s inventory for $10/bottle, 2/10 n30.

12 Billed customers $2,500 for cleaning services.

13 Goat company purchased 10 bottles of window washing detergent for $20 per bottle, 1/5 n30 .

14 Paid Coal Company in full.

18 Paid $1,000 cash on amount owed on truck and $800 on amount owed on cleaning supplies.

19 Received payment from Goat company.

20 Paid $1,200 cash for employee salaries.

21 Collected $1,400 cash from customers billed on July 12.

25 Billed customers $3,000 for cleaning services.

31 Paid gas and oil for month on truck $200.

31 Paid Dividends of $900.

Prepare the multistep income statement and statement of Retained Earnings for July and a classified balance sheet at July 31

Answer 1