Kristin Malone opened Kristin's Maids Cleaning Service on July 1, 2014.
During July, the company completed the following transactions.
July 1 Invested $14,400 cash in the business.
July 1 Purchased a used truck for $10,000, paying $2,000 cash and the balance using a Notes Payable.
July 3 Purchased cleaning supplies for $600 on account.
July 5 Paid $3,600 on a 1-year insurance policy, effective July 1.
July 12 Billed customers $3,800 for cleaning services.
July 18 Paid $2,000 of amount owed on truck, and $400 of amount owed on cleaning supplies (prepare a compound entry.)
July 20 Paid $1,600 for employee salaries.
July 25 Billed customers $1,500 for cleaning services.
July 31 Paid gasoline for truck, $400 and withdrew $600 cash for personal use (prepare a compound entry.)
Acct220 Quiz #2 Part 1 Page 1 of 2
Instructions:
a. Journalize the July transactions.
b. Prepare and record the adjusting journal entries for the following July 31 end of period adjustments:
1. Unbilled fees for services performed at July 31 were $1,300.
2. Depreciation on equipment for the month was $200.
3. One month of the insurance expired.
4. An inventory count shows $100 of cleaning supplies on hand at July 31.
5. Accrued but unpaid employee salaries were $500.
c. Prepare and record the closing journal entries for the month of July.
d. Prepare an income statement for the month of July.