Reference no: EM133060823

Question - Mike Greenberg opened Indigo Window Washing Inc. on July 1, 2022. During July, the following transactions were completed.

July 1 Issued 13,900 shares of common stock for $13,900 cash.

July 1 Purchased used truck for $9,280, paying $2,320 cash and the balance on account.

July 3 Purchased cleaning supplies for $1,040 on account.

July 5 Paid $2,040 cash on a 1-year insurance policy effective July 1.

July 12 Billed customers $4,290 for cleaning services performed.

July 18 Paid $1,160 cash on amount owed on truck and $580 on amount owed on cleaning supplies.

July 20 Paid $2,320 cash for employee salaries.

July 21 Collected $1,860 cash from customers billed on July 12.

July 25 Billed customers $2,900 for cleaning services performed.

July 31 Paid $340 for maintenance of the truck during month.

July 31 Declared and paid $700 cash dividend.

The chart of accounts for Indigo Window Washing contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, and Salaries and Wages Expense.

Required -

1. Journalize the following adjustments.

(1) Services performed but unbilled and uncollected at July 31 were $1,970.

(2) Depreciation on equipment for the month was $210.

(3) One-twelfth of the insurance expired.

(4) A count shows $370 of cleaning supplies on hand at July 31.

(5) Accrued but unpaid employee salaries were $460.

2. Prepare a post-closing trial balance at July 31.