Accounting problem P4-8A help
Linda Blye opened Cardinal Window Washing Inc. on July 1, 2010. During July the following transactions were completed.
Issued 11,000 shares of common stock for $11,000 cash.
Purchased used truck for $9,000, paying $2,000 cash and the balance on account.
Purchased cleaning supplies for $900 on account.
Paid $1,800 cash on 1-year insurance policy effective July 1.
Billed customers $3,200 for cleaning services.
Paid $1,000 cash on amount owed on truck and $500 on amount owed on cleaning supplies.
Paid $2,000 cash for employee salaries.
Collected $1,400 cash from customers billed on July 12.
Billed customers $2,500 for cleaning services.
Paid $260 for gas and oil used in the truck during month.
Declared and paid $600 cash dividend.
The chart of accounts for Cardinal Window Washing contains the following accounts: Cash, Accounts Receivable, Cleaning Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Salaries Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Gas & Oil Expense, Cleaning Supplies Expense, Depreciation Expense, Insurance Expense, Salaries Expense.
Hint: Complete all steps in accounting cycle.
Journalize the July transactions.
Post to the ledger accounts. (Use T accounts.)
Prepare a trial balance at July 31.
Journalize the following adjustments.
Services provided but unbilled and uncollected at July 31 were $1,700.
Depreciation on equipment for the month was $250.
One-twelfth of the insurance expired.
An inventory count shows $360 of cleaning supplies on hand at July 31.
Accrued but unpaid employee salaries were $400.
Post adjusting entries to the T accounts.
Prepare an adjusted trial balance.
Cash $ 4,240
Prepare the income statement and a retained earnings statement for July and a classified balance sheet at July 31.
Tot. assets $21,000
Journalize and post closing entries and complete the closing process.
Prepare a post-closing trial balance at July 31.
asked 3 years ago | Closed
Hope this helps. I will admit that this is not my original work, but it appears to be accurate based on my quick review of the numbers.
July 1: Dr: Cash; Cr: Linda Blye, Owner's Equity
July 1: Dr: Accts Pay 7911; Cr: Cash 2155, Equipment 10066 (subtract 2155 from 10066 to Accts Pay)
July 3: Dr: Supplies 941; Cr: Accts Pay: 941
July 5: Dr: Insurance Exp: 1825; Cr: Cash: 1825
July 12: Dr: Accts Rec: 3225; Cr: Services: 3225
July 18: Dr: Accts Pay: 1818 (1304+514); Cr: Cash: 1818
July 20: Dr: Salaries: 2250; Cr: Cash: 2250
July 21: Dr: Cash: 1559; Cr: Accts Rec: 1559
July 25: Dr: Accts Rec: 2699; Cr: Services: 2699
July 31: Dr: Maintenance: 380; Cr: Cash: 380
July 31: Dr: Owner's Equity: 641; Cr: Cash: 641
1) Debit: Expense: 1788
Credit: Services: 1788
2) Debit: Equipment: 260 (after depreciation 9806)
Credit: Depreciation: 260
3) Debit: Insurance: 1825
Credit: Insurance (adjusted): 152 (total after adjustment 1673)
divide 1 by 12 then multiply the result by 1825
4) Debit: Inventory: 360
Credit: Supplies: 581 (941-360)
5) Debit: Interest: 427
Credit: Notes Payable: 427
answered 3 years ago
OTHER QUESTIONS NEEDING ANSWERS