Question

July
1	Invested personal money of $14,000 into the new company bank account
1	Purchased a used van for $10,000, paying $3,000 cash and the balance on account
3	Purchased cleaning supplies for $800 on account.
5	Paid $1,800 on a one-year insurance policy, effective July 1.
12	Billed customer $3,800 for cleaning services.
18	Paid $1,000 of the amount owed on the van, and $400 of the amount owed on cleaning supplies.
20	Paid $1,600 for employee salaries.
21	collected $1,400 from customers billed on July 12.
25	Billed customers $1,500 for cleaning services.
31	Paid gas and oil for the month on the van, $400
31	Paid herself $600 for personal use.
(a)	Journalize the above entries for July. Use page J1 for the journal.
(b)	Post the entries to the ledger accounts
c)	Prepare a trial balance at July 31 on a worksheet
(d)	Enter the following adustments on the worksheet, and complete the worksheet.
	1. Earned but unbilled fees at July 31 were $1,300
	2. Depreciation on equipment for the month was $200
	3. One month of the insurance expired.
	4. An inventory count shows $100 of cleaning supplies on hand at July 31.
	5. Accrued but unpaid employee salaries were $500
(e)	Prepare the income statement and a statement of owner's equity for July
(f)	Prepare a classified balance sheet for July 31, 2014
(g)	Journalize and post the adjusting entries. Use page J2 for the journal.
(h)	Journalize and post the closing entries, and complete the closing process. Use page J3 for the journal.
(i)	Prepare a post-closing trial balance at July 31. Prepare Income and Statement of Owners' Equity, and a Balance Sheet Barbara's Cleaning Service Income Statement For the Month Ended July 31, 2018 Revenues Expenses Total expenses Net income Barbara's Cleaning Service Statement of Owner's Equity For the Month Ended July 31, 2018 Barbara, Capital, July 1 Add:   Investment by owner Add:   Net Income Less: Withdrawals Barbara, Capital, July 31 BARBARA'S CLEANING SERVICE Balance Sheet July 31, 2018 Assets Current assets Less: Accumulated depreciation Total assets Liabilities and Owners’ Equity Current liabilities Total liabilities                    - Owners’ equity Barbara, Capital Total liabilities and Owners’ equity Assets = Liabilities + Owner's Equity

Answer 1

1	Journal entries for July
Date	General Journal	Debit	Credit
1-Jul	Cash	$14,000
	Barbara, capital		$14,000
1-Jul	Van	$10,000
	Cash		$3,000
	Account Payable		$7,000
3-Jul	Supplies	$800
	Account payable		$800
5-Jul	Prepaid Insurance	$1,800
	Cash		$1,800
12-Jul	Account receivable	$3,800
	Service revenue		$3,800
18-Jul	Account payable	$1,400
	Cash		$1,400
20-Jul	Salaries expense	$1,600
	Cash		$1,600
21-Jul	Cash	$1,400
	Account receivable		$1,400
25-Jul	Account receivable	$1,500
	Service revenue		$1,500
31-Jul	Gas and oil expenses	$400
	Cash		$400
31-Jul	Drawings	$600
	Cash		$600

The ledgers for the month of July
Cash					Barbara, Capital
1-Jul	$14,000	1-Jul	$3,000				1-Jul	$14,000
21-Jul	$1,400	5-Jul	$1,800
		18-Jul	$1,400
		20-Jul	$1,600
		31-Jul	$400
		31-Jul	$600
								$14,000
	$6,600
Supplies					Van
3-Jul	$800				1-Jul	$10,000
	$800					$10,000
Prepaid Insurance					Account receivable
5-Jul	$1,800				12-Jul	$3,800	21-Jul	$1,400
					25-Jul	$1,500
	$1,800					$3,900
Account payable					Salaries expense
18-Jul	$1,400	1-Jul	$7,000		20-Jul	$1,600
		3-Jul	$800
			$6,400			$1,600
Gas and Oil expense					Barbara, Drawings
31-Jul	$400				31-Jul	$600
	$400					$600
Service Revenue
		12-Jul	$3,800
		25-Jul	$1,500
			$5,300

3	Trial Balance at July 31
		Debit	Credit
	Cash	$6,600
	Supplies	$800
	Account receivable	$3,900
	Prepaid Insurance	$1,800
	Van	$10,000
	Account payable		$6,400
	Barbara, Capital		$14,000
	Barbara, Drawing	$600
	Service Revenue		$5,300
	Salaries expense	$1,600
	Gas and oil expenses	$400
	Total	$25,700	$25,700
4	Worksheet
		Trail Balance		Adjustment		Adjusted Trial Balance		Income statement		Balance Sheet
		Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
	Cash	$6,600				$6,600				$6,600
	Supplies	$800			$700	$100				$100
	Account receivable	$3,900		$1,300		$5,200				$5,200
	Prepaid Insurance	$1,800			$150	$1,650				$1,650
	Van	$10,000				$10,000				$10,000
	Accumulated depreciation-Van				$200		$200				$200
	Account payable		$6,400				$6,400				$6,400
	Salaries Payable				$500		$500				$500
	Barbara, Capital		$14,000				$14,000				$14,000
	Barbara, Drawing	$600				$600				$600
	Service Revenue		$5,300		$1,300		$6,600		$6,600
	Salaries expense	$1,600		$500		$2,100		$2,100
	Gas and oil expenses	$400				$400		$400
	Depreciation Expense			$200		$200		$200
	Insurance expense			$150		$150		$150
	Supplies expense			$700		$700		$700
	Income summary							$3,050			$3,050
	Total	$25,700	$25,700	$2,850	$2,850	$27,700	$27,700	$6,600	$6,600	$24,150	$24,150
5	Income statement
	Service Revenue		$6,600
	Less: Expenses
	Salaries expense	$2,100
	Gas and oil expenses	$400
	Depreciation Expense	$200
	Insurance expense	$150
	Supplies expense	$700
	Total expenses		$3,550
	Net income		$3,050
	Statement of Owner's Equity
	Barbara Capital on july 1	$0
	Add: Investment during month	$14,000
	Add: Net Income	$3,050
	Less: Drawings	$600
	Barbara Capital on july 31	$16,450
6	Balance sheet
	Assets
	Current Assets:
	Cash	$6,600
	Supplies	$100
	Account receivable	$5,200
	Prepaid Insurance	$1,650
	Total Current assets		$13,550
	Van	$10,000
	Less: Accumulated Depreciation	$200	$9,800
	Total Assets		$23,350
	Liabilities and Owner's Equity
	Current Liabilities
	Account payable	$6,400
	Salaries payable	$500
	Total current liabilities		$6,900
	Owner's equity		$16,450
	Total Liabilities and Owner's equity		$23,350