Jul 1 Jim Seaby invested 35000 cash and 8100 of cleaning equ

Jul 1 Jim Seaby invested $35,000 cash and $8,100 of cleaning equipment in the business. 1 Purchased a used truck for $12,000, paying $5,000 cash and the balance on account. 3 Purchased cleaning supplies for $2,875 on account. 5 Paid $1,200 on a one-year insurance policy, effective July 1. 8 Received $1,500 from customer for future cleaning services. 12 Billed customers $6,730 for cleaning services. 18 Paid $2,000 of amount owed on truck. 20 Paid $1,492 for employee salaries. 21 Collected $4,200 from customers billed on July 12. 25 Billed customers $3,485 for cleaning services. 31 Paid gasoline for the month on the truck, $250. 31 Owner withdrew $1,100 for personal use.

Adjustments: Jul 31 Earned but unbilled fees at July 31 were $1,592. Depreciation on truck for the month was $175. Earned $500 of payment received on July 8. One-twelfth of the insurance expired. An inventory count shows $350 of cleaning supplies on hand at July 31. Accrued but unpaid employee salaries were $585.

Journalize and post the July transactions. Use page J1 for the journal
Prepare a trial balance at July 31
Journalize and post the adjusting entries. Use page J2 for the journal
Prepare an adjusted trial balance at July 31
Prepare the Income Statement and Statement of Owners Equity for July.
Prepare a classified Balance Sheet at July 31, 2017
Journalize and post the closing entries. Use page J3 for the journal.
Prepare a post-closing trial balance at July 31

Solution

Journal Entries as of 31-July (Pre adjustments) S. No# Particulars/ Ledger A/c Dr / Cr Amount 1 Cash Dr           35,000 Capital Cr           35,000 2 Equipment Dr             8,100 Capital Cr             8,100 3 Truck a/c Dr           12,000 Cash Cr             5,000 Truck Vendor Cr             7,000 4 Purchases a/c Dr             2,875 Purchases vendor Cr             2,875 5 Insurance Expenses Dr             1,200 Cash Cr             1,200 6 Cash Dr             1,500 Advance Revenue Cr             1,500 7 Debtors a/c Dr             6,730 Revenue Cr             6,730 8 Truck Vendor Dr             2,000 Cash Cr             2,000 9 Salaries a/c Dr             1,492 Cash Cr             1,492 10 Cash Dr             4,200 Debtors a/c Cr             4,200 11 Debtors a/c Dr             3,485 Revenue Cr             3,485 12 Gasoline expenses a/c Dr                 250 Cash Cr                 250 13 Capital a/c Dr             1,100 Cash Cr             1,100 Trial balance as of 31-July (Pre adjustments) Particulars/ Ledger A/c Dr    Cr Cash           29,658 Capital           42,000 Equipment             8,100 Truck           12,000 Truck Vendor             5,000 Purchases             2,875 Purchases vendor             2,875 Insurance Expenses             1,200 Advance Revenue             1,500 Debtors a/c             6,015 Revenue           10,215 Salaries a/c             1,492 Gasoline expenses a/c                 250 Total           61,590           61,590