Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the

Question

Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July
the following transactions were completed.
July 1 Issued 12,000 shares of common stock for $12,000 cash.
1 Purchased used truck for $8,000, paying $2,000 cash and the balance on
account.
3 Purchased cleaning supplies for $900 on account.
5 Paid $1,800 cash on 1-year insurance policy effective July 1.
12 Billed customers $3,700 for cleaning services.
18 Paid $1,000 cash on amount owed on truck and $500 on amount owed on
cleaning supplies.
20 Paid $2,000 cash for employee salaries.
21 Collected $1,600 cash from customers billed on July 12.
25 Billed customers $2,500 for cleaning services.
31 Paid $290 for maintenance of the truck during month.
31 Declared and paid $600 cash dividend.
The chart of accounts for Pro 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, Salaries and Wages
Expense.

Explanation / Answer

1July 12 Cash Dr 12000 Common Stock Cr 12000 (Issued 12,000 shares of Par Value $1as common stock for $12,000 cash) 1 Jul 12 Equipment A/C Dr 8000 Cash Cr 2000 Acct Payable Cr 6000 (Purchased used truck for $8,000, paying $2,000 cash and the balance on account) 3 Jul12 Supplies Dr 900 Acct Payable Cr 900 (Purchased cleaning supplies for $900 on account.) 5Jul 12 Prepaid Insurance Dr 1800 Cash Cr 1800 (Paid $1,800 cash on 1-year insurance policy effective July 1.) 12 Jul12 Acct Rxable Dr 3700 Service Revenue Cr 3700 (Billed customers $3,700 for cleaning services.) 18 Jul12 Acct Payable Dr 1500 Cash Cr 1500 (Paid $1,000 cash on amount owed on truck and $500 on amount owed on cleaning supplies). 20JUl12 Salaries and Wages Expense Dr 2000 Cash Cr 2000 ( Paid $2,000 cash for employee salaries.) 21Jul12 Cash Dr 1600 Acct Rxable Cr 1600 (Collected $1,600 cash from customers billed on July 12) 25Jul12 Acct Rxable Dr 2500 Service Revenue Cr 2500 ( Billed customers $2,500 for cleaning services.) 31Jul12 Maintenance and Repairs Expense Dr 290 Cash Cr 290 (Paid $290 for maintenance of the truck during month) 31 Jul12 Retained Earnings Dr 600 Dividends Cr 600 ( Declared $600 cash dividend) 31 Jul 12 Dividends Dr 600 Cash Cr 600 ( Paid $600 cash dividend) .

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.