Reference no: EM13481741

Linda Blye opened Cardinal Window Washing Inc on July 1st2010. During July the following transactions were completed.

July:

1. Issued 11,000 shares of common stock for $11,000cash.
1. Purchased used truck for $9,000, paying $2,000 cash and thebalance on account.
3. Purchased cleaning supplies for $900 on account
5. Paid $1,800 cash on 1-yr insurance policy effective July1st
12. Billed customers $3,200 for cleaning services
18. Paid $1,000 cash on amount owed on truck and $500 onamount owed on cleaning supplies
20. Paid $2,000 cash for employee salaries
21. Collected $1,400 cash from customers billed on July12th
25. Billed customers $2,500 for cleaning services
31. Paid $260 for gas and oil used in the truck duringmonth
31. Declared and paid $600 cash dividend

Chart of Accounts: Cash, Accounts Receviable, cleaning supplies, prepaid insurance, equpiment, accumulated depreciation-equpiment, accounts payable, salaries payabe, commonstock, retained earnings, dividends, income summary, service revenue, gas & oil expense, cleaning supplies expense, depreciation expense, insurance expense, salaries expense.

INSTRUCTIONS.

1) Journalize the july transactions

2) Post to the ledger accounts ( Use T Accounts)

3)Prepare trial balance at July 31st

4)Journalize:

1)services provided but unbilled and uncollectedat July 31st were $1,700
2)depreciationon equipment for the month was $250
3) one-twelfth of the insurance expired
4)an inventory count shows $360 of cleaning supplies on hand atJuly 31st
5)accrued but unpaid employee salaries were $400

5) Post adjusting entries to the T Account

6) Prepare an adjusted trial balance

7) Prepare the income statement and a retained earningsstatement for July and a classified balance sheet at july31st

8) journalize and post closing entries and complete theclosing process

9) Prepare a post-closing trial balance at July 31st