Question 1 Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. During July, the following transactions were completed. July 1   Issued 13,740…

 

 

 

Question 1

Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. During July, the following transactions were completed.

July 1

 

Issued 13,740 shares of common stock for $13,740 cash.

1

 

Purchased used truck for $9,740, paying $2,069 cash and the balance on account.

3

 

Purchased cleaning supplies for $932 on account.

5

 

Paid $2,040 cash on a 1-year insurance policy effective July 1.

12

 

Billed customers $4,870 for cleaning services.

18

 

Paid $1,100 cash on amount owed on truck and $535 on amount owed on cleaning supplies.

20

 

Paid $2,064 cash for employee salaries.

21

 

Collected $1,674 cash from customers billed on July 12.

25

 

Billed customers $2,602 for cleaning services.

31

 

Paid $369 for maintenance of the truck during month.

31

 

Declared and paid $635 cash dividend.

 
 

 

 

 

 

Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

 

[removed]

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[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous question.)

Cash

 

[removed]

 

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[removed]

 

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[removed]

 

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Accounts Receivable

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Supplies

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Prepaid Insurance

 

[removed]

 

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[removed]

 

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Equipment

 

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Accounts Payable

 

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Common Stock

 

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Dividends

 

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Service Revenue

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Maintenance and Repairs Expense

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Salaries and Wages Expense

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Prepare a trial balance at July 31.

CLEAN WINDOW WASHING INC.
Trial Balance
July 31, 2014

 

Debit

Credit

[removed]

$[removed]

$[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

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[removed]

[removed]

 

$[removed]

$[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

(1)

 

Services performed but unbilled and uncollected at July 31 were $1,755.

(2)

 

Depreciation on equipment for the month was $208.

(3)

 

One-twelfth of the insurance expired.

(4)

 

An inventory count shows $320 of cleaning supplies on hand at July 31.

(5)

 

Accrued but unpaid employee salaries were $447.

 

No.

Account Titles and Explanation

Debit

Credit

1.

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[removed]

2.

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3.

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4.

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5.

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[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Post adjusting entries to the T-accounts.

Cash

7/1

13,740

7/1

2,069

7/21

1,674

7/5

2,040

   

7/18

1,635

   

7/20

2,064

   

7/31

369

   

7/31

635

7/31 Bal.

6,602

   

Accounts Receivable

7/12

4,870

7/21

1,674

7/25

2,602

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Supplies

7/3

932

 

[removed]

 

[removed]

 

[removed]

Prepaid Insurance

7/5

2,040

 

[removed]

 

[removed]

 

[removed]

Equipment

7/1

9,740

   

7/31 Bal.

9,740

   

Accumulated Depreciation-Equipment

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Accounts Payable

7/18

1,635

7/1

7,671

   

7/3

932

   

7/31 Bal.

6,968

Salaries and Wages Payable

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Common Stock

   

7/1

13,740

   

7/31 Bal.

13,740

Dividends

7/31

635

   

7/31 Bal.

635

   

Service Revenue

 

[removed]

7/12

4,870

 

[removed]

7/25

2,602

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Maintenance and Repairs Expense

7/31

369

   

7/31 Bal.

369

   

Supplies Expense

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Depreciation Expense

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Insurance Expense

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Salaries and Wages Expense

7/20

2,064

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Prepare an adjusted trial balance.

CLEAN WINDOW WASHING INC.
Trial Balance
July 31, 2014

 

Debit

Credit

[removed]

$[removed]

$[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

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[removed]

 

$[removed]

$[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Prepare the income statement for July.

CLEAN WINDOW WASHING INC.
Income Statement

For the Month Ended July 31, 2014

     

[removed]

 

$[removed]

     

[removed]

$[removed]

 

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[removed]

 

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[removed]

 

[removed]

[removed]

 
   

[removed]

   

$[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Prepare a retained earnings statement for July. (List items that increase retained earnings first.)

CLEAN WINDOW WASHING INC.
Retained Earnings Statement
For the Month Ended July 31, 2014

 

$[removed]

:

[removed]

 

[removed]

:

[removed]

 

$[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Prepare a classified balance sheet at July 31. (List current assets in order of liquidity.)

CLEAN WINDOW WASHING INC.
Balance Sheet
July 31, 2014

Assets

             

[removed]

   

$[removed]

     

[removed]

   

[removed]

     

[removed]

   

[removed]

     

[removed]

   

[removed]

     
         

$[removed]

 
             

[removed]

   

[removed]

     

: [removed]

   

[removed]

 

[removed]

 
         

$[removed]

 

Liabilities and Stockholders’ Equity

             

[removed]

   

$[removed]

     

[removed]

   

[removed]

     
         

$[removed]

 
             

[removed]

   

[removed]

     

[removed]

   

[removed]

     
         

[removed]

 
         

$[removed]

 
 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Journalize closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

(To close revenue account)

   

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

(To close expense accounts)

   

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

(To close net income / (loss))

   

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

(To close dividends)

   
 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Post closing entries and complete the closing process.

Cash

7/1

13,740

7/1

2,069

7/21

1,674

7/5

2,040

   

7/18

1,635

   

7/20

2,064

   

7/31

369

   

7/31

635

7/31 Bal.

6,602

   

Accounts Receivable

7/12

4,870

7/21

1,674

7/25

2,602

   

7/31

1,755

   

7/31 Bal.

7,553

   

Supplies

7/3

932

7/31

612

7/31 Bal.

320

   

Prepaid Insurance

7/5

2,040

7/31

170

7/31 Bal.

1,870

   

Equipment

7/1

9,740

   

7/31 Bal.

9,740

   

Accumulated Depreciation-Equipment

   

7/31

208

   

7/31 Bal.

208

Accounts Payable

7/18

1,635

7/1

7,671

   

7/3

932

   

7/31 Bal.

6,968

Salaries and Wages Payable

   

7/31

447

   

7/31 Bal.

447

Common Stock

   

7/1

13,740

   

7/31 Bal.

13,740

Retained Earnings

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Dividends

7/31

635

 

[removed]

 

[removed]

 

[removed]

Income Summary

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

[removed]

 

[removed]

Service Revenue

 

[removed]

7/12

4,870

 

[removed]

7/25

2,602

 

[removed]

7/31

1,755

 

[removed]

 

[removed]

Maintenance and Repairs Expense

7/31

369

 

[removed]

 

[removed]

 

[removed]

Supplies Expense

7/31

612

 

[removed]

 

[removed]

 

[removed]

Depreciation Expense

7/31

208

 

[removed]

 

[removed]

 

[removed]

Insurance Expense

7/31

170

 

[removed]

 

[removed]

 

[removed]

Salaries and Wages Expense

7/20

2,064

 

[removed]

7/31

447

 

[removed]

 

[removed]

 

[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

Prepare a post-closing trial balance at July 31.

CLEAN WINDOW WASHING INC.
Post-Closing Trial Balance
July 31, 2014

 

Debit

Credit

[removed]

$[removed]

$[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

[removed]

 

$[removed]

$[removed]

 

 

Show List of Accounts

Link to Text

       
 

 

 

 

 

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