Kristin Malone opened Kristin\'s Maids Cleaning Service on July 1, 2015. During
ID: 2483793 • Letter: K
Question
Kristin Malone opened Kristin's Maids Cleaning Service on July 1, 2015. During July, the company completed the following transactions.
The chart of accounts for Kristin's Maids Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense.
Instructions
Prepare a trial balance at July 31 on a worksheet.
Trial balance $25,700
1.
2.
3.
4.
5.
Prepare an income statement and a retained earnings statement for July, and a classified balance sheet at July 31, 2015.
Net income $3,050
Total assets $23,350
Prepare a post-closing trial balance at July 31.
Post-closing trial balance $23,550
July?1 Stockholders invested $14,000 cash in the business in exchange for common stock. 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 $1,800 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 $1,500 for cleaning services. 31 Paid gasoline for the month on the truck, $400. 31 Declared and paid a $600 cash dividend.Explanation / Answer
Journal Entries
JULY1. CASH DEBIT $14000
TO COMMON STOCK $14000
1. TRUCK DEBIT $10000
TO CASH CR. $3000
TO ACOUNTS PAYABLE CR.$7000
3. SUPPLIES DR/ $800
TO ACOUNTS PAYABLE CR.$800
5. PREPAID INSURANCE DR. $1800
TO CASH CR. $1800
12. ACCOUNTS RECIEVABLE DR. $3800
TO SERVICE REVENUE CR. $3800
18. ACOUNTS PAYABLE DR.$1400
TO CASH CR. $1400
20. SALARIES AND WAGES DR. $1600
TO CASH $1600
21. CASH DR. $1400
TO ACCOUNTS RECEIVABLE CR. $1400
25. ACCOUNTS RECEIVABLE DR. $1500
TO SERVICE REVENUE CR. $1500
31. GASOLINE DR. $400
TO CASH CR. $400
31. DIVIDENDS DR. $600
TO CASH CR. $600
TRIAL BALANCE
INCOME STATEMENT
RETAINED EARNING STATEMENT
BALANCE SHEET
ANSWER E
1.UNEARNED REVENUE DR. $1300
TO SERVICE REVENUE CR. $1300
2.DEPRECIATION DR. $200
TO TRUCK CR. $200
3. INSURANCE DR. $150
TO PREPAID INSURANCE $150
4.POFIT AND LOSS DR. $700
TO SUPPLIES CR. $700
5. SALARY AND WAGES DR. $500
TO ACCRUED SALARY CR. $500
PARTICULARS DEBIT $ CREDIT $ COMMON STOCK 14000 CASH 6600 ACCOUNTS RECEIVABLE 3900 ACCOUNTS PAYABLE 6400 TRUCK 10000 SUPPLIES 800 PREPAID INSURANCE 1800 SERVICE REVENUE 5300 SALRIES AND WAGES 1600 GASOLINE 400 DIVIDENDS 600 TOTAL 25700 25700Related Questions
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