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    An Analysis of Company Transactions and Adjustments.

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    Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed:

    July 1 Issued 15,529 shares of common stock for $15,529 cash.
    1 Purchased used truck for $11,529, paying $2,018 cash and the balance on account.
    3 Purchased cleaning supplies for $933 on account.
    5 Paid $1,800 cash on 1-year insurance policy effective July 1.
    12 Billed customers $4,850 for cleaning services.
    18 Paid $1,013 cash on amount owed on truck and $534 on amount owed on cleaning supplies.
    20 Paid $2,047 cash for employee salaries.
    21 Collected $1,674 cash from customers billed on July 12.
    25 Billed customers $2,603 for cleaning services.
    31 Paid $363 for maintenance of the truck during month.
    31 Declared and paid $623 cash dividend.

    1. Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Record journal entries in the order presented in the problem.)
    For example: Date, Account Titles and Explanation, Debit, Credit

    Dicker Company accumulates the following adjustment data on December 31.

    2. Indicate the type of adjustment (prepaid expense, accrued revenue, and so on) and the status of the accounts before adjustment (overstated or understated).
    For example: Item, Type of Adjustment, Accounts Before Adjustment

    (a) Supplies of $400 are on hand. Supplies account shows $1,600 balance.
    (b) Service Revenue earned but unbilled total $700.
    (c) Interest of $300 has accumulated on a note payable.
    (d) Rent collected in advance totaling $1,100 has been earned.

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    Solution Summary

    The solution journalizes transactions and identifies types of adjustments in an Excel spreadsheet.