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 a trial balance at July 31 on a work sheet

Answer 1

Prepare the unadjusted trial balance as follows

Patrick’s Window Washing
Work Sheet
31 July, 2019
Account Title	Trial Balance	Adjustments	Adjusted Trial Balance	Income Statement	Balance Sheet
Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$13,104
Accounts Receivable	$4,100
Cleaning Supplies	$1,300
Prepaid Insurance	$1,200
Inventory	$96
Equipment - Truck	$6,000
Capital		$20,000
Accounts Payable		$2,500
Dividends	$900
Service Revenue		$5,500
Sales Revenue		$200
Cost of Goods Sold	$100
Salaries Expenses	$1,200
Gas & oil Expenses	$200
Total	$28,200	$28,200

Notes: