Reference no: EM132545126

Ashley Williams opened Ashley's Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions.

July 1 Invested $14,000 cash in the business.

1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account.

3 Purchased cleaning supplies for $800 on account.

5 Paid $2,160 on a 1-year insurance policy, effective July 1.

12 Billed customers $3,800 for cleaning services.

18 Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies.

20 Paid $1,600 for employee salaries.

21 Collected $1,400 from customers billed on July 12.

25 Billed customers $1,900 for cleaning services.

31 Paid gasoline for the month on the truck, $400.

31 Withdrew $700 cash for personal use.

Instructions

Question (a) Journalize and post the July transactions. Use page J1 for the journal.

Question (b) Prepare trial balance at July 31 on a worksheet.

Question (c) Enter the following adjustments on the worksheet, and complete the worksheet.

(1) Unbilled fees for services performed at July 31 were $1,300.

(2) Depreciation on equipment for the month was $200.

(3) One-twelfth of the insurance expired.

(4) An inventory count shows $100 of cleaning supplies on hand at July 31.

(5) Accrued but unpaid employee salaries were $500.

Question (d) Prepare the income statement and owner's equity statement for July, and a classified balance sheet at July 31, 2017.

Question (e) Journalize and post the adjusting entries. Use page J2 for the journal.

Question (f) Journalize and post the closing entries, and complete the closing process. Use page J3 for the journal.

Question (g) Prepare post-closing trial balance at July 31.