Kristin Malone opened Kristin’s Maids Cleaning Service on July 1, 2015. During July, the company completed the following transactions. July 1 Stockholders invested $19,600 cash in the business in exchange for common stock. 1 Purchased a used truck for $10,400, paying $2,500 cash and the balance on account. 3 Purchased cleaning supplies for $890 on account. 5 Paid $2,040 on a 1-year insurance policy, effective July 1. 12 Billed customers $3,800 for cleaning services. 18 Paid $1,300 of amount owed on truck, and $230 of amount owed on cleaning supplies. 20 Paid $1,700 for employee salaries. 21 Collected $1,700 from customers billed on July 12. 25 Billed customers $1,600 for cleaning services. 31 Paid gasoline for the month on the truck, $470. 31 Declared and paid a $590 cash dividend. (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 fees for services performed at July 31 were $1,500. (2) Depreciation on equipment for the month was $280. (3) One-twelfth of the insurance expired. (4) An inventory count shows $210 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $580. KRISTIN’S MAIDS CLEANING SERVICE Worksheet For the Month Ended July 31, 2015
Account Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash:
Accounts Receivable:
Supplies:
Prepaid Insurance:
Equipment:
Accounts Payable:
Common Stock:
Dividends:
Service Revenue:
Gasoline Expense:
Salaries and Wages Expense:
Total:
Depreciation Expense Accum. Depr.—Equipment:
Insurance Expense:
Supplies Expense:
Salaries and Wages Payable:
Totals:
Net Income:
Totals: