Reference no: EM132846396

Question - "Jim's Cleaning Services prepares financial statements at the end of each month. The following information is in relation to the month of July.

1. On 1 July, rent of $3,600 for the 6-month period ending 31 December is paid.

2. A 1-year insurance policy is purchased on 1 July for $1,560.

3. On 10 July, the Cross Hotel paid the business $2,800 in advance for doing their cleaning for the next 3 months. 30% of the cleaning work has been provided in the month of July.

4. The cleaning supplies of $2,340 was purchased on 15 July. The supplies account had a $260 debit balance on 1 July and $220 of supplies are on hand as at 31 July.

5. The business has two part-time employees who each earn $190 per day. They were both worked 16 days in the month. They were paid for the 14 days on 28 July, but not for the last 2 days for which they have worked after 28 July.

Required -

a) Record the above transactions occurred in the month of July in the general journal.

b) Prepare the necessary adjusting entries at the end of the month of July.