Question

Journalize and post the August transactions.  Use page J1 for the journal.
Prepare a trial balance at August 31.
Journalize and post the adjusting entries.  Use page J2 for the journal.
Prepare an adjusted trial balance at August 31.
Prepare the Income Statement and Statement of Owners Equity for August.
Prepare a classified Balance Sheet at August 31, 2018.
Journalize and post the closing entries.  Use page J3 for the journal.
Prepare a post-closing trial balance at August 31.
		Joshua Sand opened Sunshine Cleaning Service on August 1, 2018. During August, the company completed the following transactions: Aug 1 Owner Joshua Sand invested $40,000 cash and $6,800 of cleaning equipment in the business. 1 Purchased a used truck for $12,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,475 on account. 5 Paid $1,800 on a one-year insurance policy, effective August 1. 12 Billed customers $5,982 for cleaning services. 18 Paid $1,500 of amount owed on truck. 19 Paid $475 of amount owed for cleaning supplies. 20 Paid $1,025 for employee salaries. 21 Collected $4,225 from customers billed on August 12. 25 Billed customers $4,075 for cleaning services. 31 Paid gasoline for the month on the truck, $215. 31 Owner Joshua Sand withdrew $1,100 for personal use. Adjustments: Aug 31 Earned but unbilled fees at August 31 were $2,875. Depreciation on truck for the month was $250. One-twelfth of the insurance expired. An inventory count shows $625 of cleaning supplies on hand at August 31. Accrued but unpaid employee salaries were $695.

Answer 1

In the books of Sunshine Cleaning Services:

Date	Account Titles	Debit	Credit
		$	$
Aug 1	Cash	40,000
	Equipment	6,800
	J. Sand, Capital		46,800
Aug 1	Equipment	12,000
	Cash		3,000
	Accounts Payable		9,000
Aug 3	Supplies	1,475
	Accounts Payable		1,475
Aug 5	Prepaid Insurance	1,800
	Cash		1,800
Aug 12	Accounts Receivable	5,982
	Service Revenue		5,982
Aug 18	Accounts Payable	1,500
	Cash		1,500
Aug 19	Accounts Payable	475
	Cash		475
Aug 20	Salaries Expense	1,025
	Cash		1,025
Aug 21	Cash	4,225
	Accounts Receivable		4,225
Aug 25	Accounts Receivable	4,075
	Service Revenue		4,075
Aug 31	Gasoline Expense	215
	Cash		215
Aug 31	J. Sand, Withdrawals	1,100
	Cash		1,100

Unadjusted Trial Balance:

Account Titles	Debit	Credit
	$	$
Cash	35,110
Accounts Receivable	5,832
Supplies	1,475
Prepaid Insurance	1,800
Equipment	18,800
Accounts Payable		8,500
J. Sand, Capital		46,800
J. Sand, Withdrawals	1,100
Service Revenue		10,057
Salaries Expense	1,025
Gasoline Expense	215
Totals	65,357	65,357

Adjusting entries:

Date	Account Titles	Debit	Credit
Aug 31		$	$
a.	Accounts Receivable	2,875
	Service Revenue		2,875
b.	Depreciation Expense	250
	Accumulated Depreciation : Equipment		250
c.	Insurance Expense	150
	Prepaid Insurance		150
d.	Supplies Expense	850
	Supplies		850
e.	Salaries Expense	695
	Salaries Payable		695

Adjusted Trial Balance:

Account Titles	Debit	Credit
	$	$
Cash	35,110
Accounts Receivable	8,707
Supplies	625
Prepaid Insurance	1,650
Equipment	18,800
Accumulated Depreciation: Truck		250
Accounts Payable		8,500
Salaries Payable		695
J. Sand, Capital		46,800
J. Sand, Withdrawal	1,100
Service Revenue		12,932
Salaries Expense	1,720
Supplies Expense	850
Gasoline Expense	215
Insurance Expense	150
Depreciation Expense	250
Totals	69,177	$ 69,177

Income Statement:

Sunshine Cleaning Service
Income Statement
For the month ended August 31, 2018
	$	$
Service Revenue		12,932
Less: Expenses
Salaries Expense	1,720
Supplies Expense	850
Insurance Expense	150
Gasoline Expense	215
Depreciation Expense	250
Total Operating Expenses		3,185
Net Income		9,747

Statement of Owners' Equity:

	$
J, Sand, Capital, August 1	46,800
Add: Net Income	9,747
Less: J. Sand, Withdrawals	(1,100)
J. Sand, Capital, Aug 31	55,447

Balance Sheet:

Sunshine Cleaning Service
Balance Sheet
August 31, 2018
Assets	$	$	Liabilities and Owners Equity	$	$
Cash	35,110		Accounts Payable	8,500
Accounts Receivable	8,707		Salaries Payable	695
Supplies	625		Total Current Liabilities		9,195
Prepaid Insurance	1,650		Long Term Liabilities		NA
Total Current Assets		46,092	Total Liabilities		9,195
Fixed Assets, net		18,550	Owners' Equity
			J. Sand, Capital	55,447
			Total Owner's Equity		55,447
Total Assets		64,642	Total Liabilities and Owner's Equity		64,642