Reference no: EM132619641
Question - Sal Vick opened Vick's Window Washing on July 1, 2017. During July the following transactions were completed.
July 1 Vick invested $12,000 cash in the business.
July 1 Purchased used truck for $6,000, paying $3,000 cash and the balance on account.
July 3 Purchased cleaning supplies for $1,300 on account.
July 5 Paid $2,400 cash on one-year insurance policy effective July 1.
July 12 Billed customers $2,500 for cleaning services.
July 18 Paid $1,000 cash on amount owed on truck and $800 on amount owed on cleaning supplies.
July 20 Paid $1,200 cash for employee salaries.
July 21 Collected $1,400 cash from customers billed on July 12.
July 25 Billed customers $7,000 for cleaning services.
July 31 Paid gas and oil for month on truck $200.
July 31 Withdrew $900 cash for personal use.
Instructions -
(a) Journalize and post the July transactions. Use page J1 for the journal and the three-column form of account.
(b) Prepare a trial balance at July 31 on a worksheet.
(c) Enter the following adjustments on the worksheet and complete the worksheet.
(1) Services provided but unbilled and uncollected at July 31 were $1,500.
(2) Depreciation on equipment for the month was $300.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $400 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $600.
(d) Prepare the income statement and owner's equity statement for July and a classifi ed balance sheet at July 31.
(e) Journalize and post adjusting entries. Use page J2 for the journal.
(f) Journalize and post closing entries and complete the closing process. Use page J3 for the journal.
(g) Post-closing trial balance at July 31.