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The document summarizes transactions recorded by Kleene Window Washing Inc. during July 2017. It includes journal entries recording expenses, revenues, cash receipts and payments. It then provides instructions to journalize adjustments, post to T-accounts, prepare trial balances and financial statements for the month.

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2K views7 pages

2492493

The document summarizes transactions recorded by Kleene Window Washing Inc. during July 2017. It includes journal entries recording expenses, revenues, cash receipts and payments. It then provides instructions to journalize adjustments, post to T-accounts, prepare trial balances and financial statements for the month.

Uploaded by

mohitgaba19
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Mike Greenberg opened Kleene Window Washing Inc. on July 1, 2017.

During July, the following transactions were comple


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 a 1-year insurance policy effective July 1.
12 Billed customers $3,700 for cleaning services performed.
18 Paid $1,000 cash on amount owed on truck and $500 on amount owed on cleaning supplies.
July 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 performed.
31 Paid $290 for maintenance of the truck during month.
 31 Declared and paid $600 cash dividend.
The chart of accounts for Kleene Window Washing contains the following accounts: Cash, Accounts Receivable, Supplies, P
Instructions
(a) Journalize the July transactions.
(b) Post to the ledger accounts. (Use T-accounts.)
(c) Prepare a trial balance at July 31.
(d) Journalize the following adjustments.
(1) Services performed but unbilled and uncollected at July 31 were $1,700.
(2) Depreciation on equipment for the month was $180.
(3) One-twelfth of the insurance expired.
(4) A count shows $320 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $400.
(e) Post adjusting entries to the T-accounts.
(f) Prepare an adjusted trial balance.
(g) Prepare the income statement and a retained earnings statement for July and a classified balance sheet at July 31.
(h) Journalize and post closing entries and complete the closing process. (i) Prepare a post-closing trial balance at July 31.

Answer D-Adjustment Entries


S.No Particulars Debit Credit
1 Accounts Receivable $ 1,700
Service Revenue $ 1,700

2 Depreciation Expense $ 180


Accumulated Depreciation— Equipment $ 180

3 Insurance Expense $ 150


Prepaid Insurance $ 150
(1/12 * $ 1,800)

4 Supplies expense $ 580


Supplies $ 580
($ 900 less $ 320)
5 Salaries and Wages Expense $ 400
Salaries and Wages Payable $ 400
wing transactions were completed. July 1 Issued 12,000 shares of common stock for $12,000 cash.
Answer A-Journal Entries
Date Particulars Debit Credit
1-Jul Cash $ 12,000
Common Stock $ 12,000

1-Jul Equipment $ 8,000


Cash $ 2,000
Accounts Payable $ 6,000

3-Jul Supplies $ 900


Accounts Receivable, Supplies, Prepaid Insurance, Accounts Payable $ 900

5-Jul Prepaid Insurance $ 1,800


Cash $ 1,800

12-Jul Accounts Receivable $ 3,700


Service Revenue $ 3,700

18-Jul Accounts Payable $ 1,500


Cash $ 1,500

20-Jul Salaries and Wages Expense $ 2,000


Cash $ 2,000
ed balance sheet at July 31.
-closing trial balance at July 31. 21-Jul Cash $ 1,600
Accounts Receivable $ 1,600

25-Jul Accounts Receivable $ 2,500


Service Revenue $ 2,500

31-Jul Maintenance and Repairs Expen $ 290


Cash $ 290

31-Jul Dividends $ 600


Cash $ 600
Answer B-T-Accounts
Cash
1-Jul $ 12,000 1-Jul
21-Jul $ 1,600 5-Jul
18-Jul
20-Jul
31-Jul
31-Jul
Balance

$ 13,600
Common Stock
Balance $ 12,000 1-Jul

Equipment
1-Jul $ 8,000 Balance

Accounts Payable
18-Jul $ 1,500 1-Jul
Balance $ 5,400 3-Jul
$ 6,900

Supplies
3-Jul $ 900 Supplies expense
Balance
$ 900

Prepaid Insurance
5-Jul $ 1,800 Insurance Expense
Balance
$ 1,800

Accounts Receivable
12-Jul $ 3,700 21-Jul
25-Jul $ 2,500 Balance
Service Revenue $ 1,700
$ 7,900

Service Revenue
Balance $ 7,900 12-Jul
25-Jul
Accounts Receivable
$ 7,900

Salaries and Wages Expense


20-Jul $ 2,000 Balance
Salaries and Wages Payable $ 400
$ 2,400

Maintenance and Repairs Expense


31-Jul $ 290 Balance

Dividends
31-Jul $ 600 Balance

Depreciation Expense
Accumulated Depreciation— Equipment $ 180 Income Summary

Accumulated Depreciation— Equipment


Balance $ 180 Depreciation Expense

Insurance Expense
Prepaid Insurance $ 150 Income Summary

Supplies expense
Supplies $ 580 Income Summary

Salaries and Wages Payable


Balance $ 400 Salaries and Wages Expense
$ 2,000
$ 1,800 Answer C-Trial Balance
$ 1,500 Particulars Debit Credit
$ 2,000 Cash $ 5,410
$ 290 Common Stock $ 12,000
$ 600 Equipment $ 8,000
$ 5,410 Accounts Payable $ 5,400
Supplies $ 900
$ 13,600 Prepaid Insurance $ 1,800
Accounts Receivable $ 4,600
$ 12,000 Service Revenue $ 6,200
Salaries and Wages Expense $ 2,000
Maintenance and Repairs Expense $ 290
$ 8,000 Dividends $ 600
$ 23,600 $ 23,600 0

$ 6,000
$ 900
$ 6,900 Answer F-Adjusted Trial Balance
Particulars Debit Credit
Cash $ 5,410
Common Stock $ 12,000
Equipment $ 8,000
$ 580 Accounts Payable $ 5,400
$ 320 Supplies $ 320
$ 900 Prepaid Insurance $ 1,650
Accounts Receivable $ 6,300
Service Revenue $ 7,900
$ 150 Salaries and Wages Expense $ 2,400
$ 1,650 Maintenance and Repairs Expense $ 290
$ 1,800 Dividends $ 600
Depreciation Expense $ 180
Accumulated Depreciation— Equipment $ 180
$ 1,600 Insurance Expense $ 150
$ 6,300 Supplies expense $ 580
Salaries and Wages Payable $ 400
$ 7,900 $ 25,880 $ 25,880

$ 3,700
$ 2,500
$ 1,700
$ 7,900

$ 2,400

$ 2,400

$ 290

$ 600

$ 180

$ 180

$ 150

$ 580

$ 400

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