Reference no: EM133105016

Question - Crane Clark opened Crane's Cleaning Service on July 1, 2022. During July, the following transactions were completed.

July 1 Crane invested $19,900 cash in the business.

July 1 Purchased used truck for $8,800, paying $3,900 cash and the balance on account.

July 3 Purchased cleaning supplies for $2,000 on account.

July 5 Paid $1,800 cash on a 1-year insurance policy effective July 1.

July 12 Billed customers $4,500 for cleaning services.

July 18 Paid $1,600 cash on amount owed on truck and $1,500 on amount owed on cleaning supplies.

July 20 Paid $2,500 cash for employee salaries.

July 21 Collected $3,400 cash from customers billed on July 12.

July 25 Billed customers $6,000 for cleaning services.

July 31 Paid $350 for the monthly gasoline bill for the truck.

July 31 Withdraw $5,600 cash for personal use.

Required -

1. Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet.

(1) Unbilled and uncollected revenue for services performed at July 31 were $2,700.

(2) Depreciation on equipment for the month was $500.

(3) One-twelfth of the insurance expired.

(4) An inventory count shows $600 of cleaning supplies on hand at July 31.

(5) Accrued but unpaid employee salaries were $1,010.

2. Prepare the income statement for July.