Reference no: EM131571173
Problem - Emily Sapphire opened Sapphire's Cleaning Service on August 1, 2016. During August, the company completed the following transactions:
Aug 1 Emily Sapphire invested $32,000 cash and $6,200 of cleaning equipment in the business.
1 Purchased a used truck for $13,000, paying $4,000 cash and the balance on account.
3 Purchased cleaning supplies for $1,650 on account.
5 Paid $1,200 on a one-year insurance policy, effective August 1.
12 Billed customers $5,875 for cleaning services.
18 Paid $2,000 of amount owed on truck, and $250 of amount owed on cleaning supplies.
20 Paid $1,280 for employee salaries.
21 Collected $4,200 from customers billed on August 12.
25 Billed customers $3,950 for cleaning services.
31 Paid gasoline for the month on the truck, $250.
31 Owner withdrew $1,000 for personal use.
Adjustments:
Aug 31 Earned but unbilled fees at August 31 were $2,085.
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 $585.
REQUIRED
(a) Journalize and post the August transactions. Use page J1 for the journal.
(b) make trial balance at August 31.
(c) Journalize and post the adjusting entries. Use page J2 for the journal.
(d) Prepare an adjusted trial balance at August 31.
(e) Prepare the Income Statement and Statement of Owners Equity for August, and a classified Balance Sheet at August 31, 2016.
(f) Journalize and post the closing entries. Use page J3 for the journal.
(g) Prepare a post-closing trial balance at August 31.