Kristin Malone opened Kristin\'s Maids Cleaning Service on July 1, 2017. During
ID: 2767042 • Letter: K
Question
Kristin Malone opened Kristin's Maids Cleaning Service on July 1, 2017. During July, the company completed the following transactions. July1 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. Post the July transactions (Post entries in the order of journal entries presented above.)
Explanation / Answer
Journal entry belongs to Accounting, not Finance. Classify questions properly.
(1) Jul 1
DR Cash $14,000
Common stock $14,000
(To record common stock invested for cash)
(2) Jul 1
DR Truck $10,000
Cash $3,000
Accounts payable $7,000
(To record purchase of truck by cash and on account)
(3) Jul 3
DR Cleaning supplies $800
Accounts payable $800
(To record purchase of cleaning supplies on account)
(4) Jul 5
DR Prepaid insurance $1,650
DR Insurance expense $150
Cash $1,800
(To record purchase of 1-year insurance policy)
(5) Jul 12
DR Accounts receivables $3,800
Revenue $3,800
(To record revenue recognized)
(6) Jul 18
DR Accounts payable $1,400
Cash $1,400
(To record payment of accounts receivable)
(7) Jul 20
DR Salaries expense $1,600
Cash $1,600
(To record salaries paid)
(8) Jul 21
DR Cash $1,400
Accounts receivable $1,400
(To record cash received from customers)
(9) Jul 25
DR Accounts receivables $1,500
Revenue $1,500
(To record revenue recognized)
(10) Jul 31
DR Gasoline expense $400
Cash $400
(To record gasoline purchased)
(11) Jul 31
(a)
DR Dividend $600
Dividend payable $600
(To record dividend declared)
(b)
DR Dividend payable $600
Cash $600
(To record dividend payment)
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