Problem - New Era Cleaning Service, Inc. opened for business on July 1, 2010. During the month of July, the following transactions occurred:
July 1 Issued $18,000 of common stock for $18,000 cash.
July 1 Purchased a truck for $11,000. Paid $4,000 in cash and borrowed the rest (long term) from the bank.
July 3 Purchased cleaning supplies for $900 on account.
July 5 Paid $1,800 on a one-year insurance policy, effective July 1.
July 12 Billed customers $4,800 for cleaning services.
July 18 Paid $1,500 of the amount owed on the truck.
July 18 Paid $500 of the amount owed on cleaning supplies.
July 20 Paid $1,700 for employee salaries.
July 21 Collected $1,200 from customers billed on July 12.
July 25 Billed customers $1,900 for cleaning services.
July 31 Paid gas and oil for the month on the truck, $500.
July 31 Paid a $800 dividend.
Instructions:
1. Post July transactions to the general journal and general ledger 'T' accounts.
2. Prepare an unadjusted trial balance.
3. Post the following adjustments.
(a) Earned but unbilled fees at July 31 were $1,400
(b) Depreciation for the month was $200
(c) One-twelfth of the insurance expired
(d) An inventory count showed $300 of cleaning supplies remaining on July 31.
(e) Accrued but unpaid employee salaries were $500.
4. Prepare an adjusted trial balance
5. Post closing entries
6. Prepare a classified balance sheet and an income statement as of July 31.
Attachment:- Assignment.rar