Finance Accounting P4-5A

May 2nd, 2015
Business Finance
Price: $30 USD

Question description


Heidi Jara opened Jara's Cleaning Service on July 1, 2015.  During July, the following transactions were completed:

1 Jul - Stockholders invested $20,000 cash in the business in exchange for common stock.

1 Jul - Purchased used truck for $9,000, paying $4,000 cash and the balance on account

3 Jul - Purchased cleaning supplies for $2,100 on account.

5 Jul - Paid $1,800 cash on a 1-year insurance policy effective July 1.

12 Jul - Billed customers $4,500 for cleaning services.

18 Jul - Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies.

20 Jul - Paid $2,500 cash for employee salaries.

21 Jul - Collected $3,400 cash for customers billed on July 12

25 Jul - Billed customers $6,000 for cleaning services.

31 Jul - Paid $350 for the monthly gasoline bill for the truck.

31 Jul - Paid $5,600 cash dividends.

The chart of accounts for Jara's cleaning service contains the following accounts:  No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation- Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages 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 worksheet and complete the worksheet

  1. unbilled and uncollected revenue for services performed at July 31 were $2,700

  2. depreciation on equipment for he month was $500

  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 $1,000

d) Prepare an income statement an a retained earnings statement for July and a classified balance sheet at July 31

e) Journalize and post adjusting entries.  Use page J2 for the journal.

f)  Journalize and post closing entries and complete the closing process.  Use page J3 for the journal

g)  Prepare a post-closing trial balance at July 31

Tutor Answer

(Top Tutor) RylanWirkkala
School: Rice University

Studypool has helped 1,244,100 students

Review from student
" Goes above and beyond expectations ! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors