Reference no: EM133035848
Question - Alan opened XYZ Laundry Service on July 1, 2020. During July, the company completed the following transactions.
July 1 Invested $14,000 cash in the business.
July 1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account.
July 3 Purchased cleaning supplies for $800 on account.
July 5 Paid $2,160 on a 1-year insurance policy, effective July 1.
July 12 Billed customers $3,800 for cleaning services.
July 18 Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies.
July 20 Paid $1,600 for employee salaries.
July 21 Collected $1,400 from customers billed on July 12.
July 25 Billed customers $1,900 for cleaning services.
July 31 Paid gasoline for the month on the truck, $400.
July 31 Withdrew $700 cash for personal use.
The chart of accounts for the company contains the following accounts:
No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 301 Owner's Capital, No. 306 Owner's Drawings, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense.
Required -
(a) Journalize and post the July transactions. Use page J1 for the journal.
(b) Journalize and post the adjusting entries. Use J2 for the journal.
(c) Journalize and post the closing entries and complete the closing process. Use J3 for the journal.