Fred Greene opened Greene's Cleaning Service on October 1, 2014. During October, the company completed the following transactions:
Oct. 1 Invested $20,000 cash in the business in exchange for common stock.
1 Purchased a used truck for $12,000, paying $3,000 cash and the balance on account.
3 Purchased cleaning supplies for $1,500 on account.
5 Paid $1,800 on a one-year insurance policy, effective October 1.
12 Billed customers $5,600 for cleaning services.
18 Paid $2,000 of amount owed on truck, and $500 of amount owed on cleaning supplies.
20 Paid $1,950 for employee salaries.
21 Collected $2,400 from customers billed on October 12.
25 Billed customers $2,500 for cleaning services.
31 Paid gasoline for the month on the truck, $350.
31 Paid dividends of $500.
Adjustments:
Oct. 31 Earned but unbilled fees at October 31 were $1,500.
Depreciation on equipment for the month was $300.
One-twelfth of the insurance expired.
An inventory count shows $500 of cleaning supplies on hand at October 31.
Accrued but unpaid employee salaries were $500.
REQUIRED:
(a) Journalize and post the October transactions. Use page J1 for the journal
(b) Prepare a trial balance at October 31
(c) Journalize and post the adjusting entries. Use page J2 for the journal
(d) Prepare an adjusted trial balance at October 31
(e) Prepare the Income Statement and Retained Earnings Statement for October, and a classified Balance Sheet at October 31, 2014
(f) Journalize and post the closing entries. Use page J3 for the journal.
(g) Prepare a post-closing trial balance at October 31