Explore BrainMass

Explore BrainMass

    Terry's Window Washing Inc.- Journal entries

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Terry Duffy opened Terry's Window Washing Inc. on July 1, 2002. During July the following transactions were completed.

    July 1 Issued $9,000 of stock for $9,000 cash.
    1 Purchased used truck for $6,000 paying $3,000 cash and the balance on account.
    3 Purchased cleaning supplies for $900 on account.
    5 Paid 1,200 cash on one-year insurance policy effective July 1.
    12 Billed customers $2,500 for cleaning services.
    18 Paid $1,000 cash on amount owned on truck and $500 on amount owed on cleaning supplies
    20 Paid 1,200 cash for employee salaries.
    21 Collected $1,400 cash from customers billed on July 12.
    25 Billed customers $3,000 for cleaning services.
    31 Paid gas and oil for month on truck $200.
    31 Deducted and paid $900 in cash dividends.

    The chart of accounts for Terry's Window Washing Inc. contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No.128 Cleaning Supplies, No. 130 Prepaid Insurance, No.157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense 726 Salaries Expense.
    (a) Journalize and post the July transactions. Use page J1 for the journal and the three-column form of account.
    (b) Prepare a trial balance at July 31 on a worksheet
    (c) Enter the following adjustments on the work sheet and complete the work sheet.
    (1) Services provided but unbilled and uncollected at July 31 were $1,100.
    (2) Depreciation on equipment for the month was $200
    (3) One-twelfth of the insurance expired.
    (4) An inventory count shows $600 of cleaning supplies on hand at July 31.
    (5) Accrued but unpaid employee salaries were $400.
    (d) Prepare the income statement and a retained earnings statement for July and a classified balance sheet at July 31.
    (e) Journalize and post entries. Use page J2 for the journal.
    (f) Journalize and post the closing entries and complete the closing process. Use page J3 for the journal.
    (g) Prepare and post-closing trial balance at July 31.

    © BrainMass Inc. brainmass.com December 24, 2021, 4:52 pm ad1c9bdddf

    Solution Summary

    Prepares journal entries, trial balance etc.