Answer:
July 1 Issued 11,500 shares of common stock for $11,500 cash.
Dr Cash 11,500
Cr Common stock 11,500
July 1 Purchased used truck for $7,680, paying $1,920 cash and the balance on account.
Dr Vehicles 7,680
Cr Cash 1,920
Cr Accounts payable 5,760
July 3 Purchased cleaning supplies for $860 on account.
Dr Supplies 860
Cr Accounts payable 860
July 5 Paid $1,680 cash on a 1-year insurance policy effective July 1.
Dr Prepaid insurance 1,680
Cr Cash 1,680
July 12 Billed customers $3,550 for cleaning services performed.
Dr Accounts receivable 3,550
Cr Service revenue 3,550
July 18 Paid $960 cash on amount owed on truck and $480 on amount owed on cleaning supplies.
Dr Accounts payable 1,440
Cr Cash 1,440
July 20 Paid $1,920 cash for employee salaries.
Dr Wages expense 1,920
Cr Cash 1,920
July 21 Collected $1,540 cash from customers billed on July 12.
Dr Cash 1,540
Cr Accounts receivable 1,540
July 25 Billed customers $2,400 for cleaning services performed.
Dr Accounts receivable 2,400
Cr Service revenue 2,400
July 31 Paid $280 for maintenance of the truck during month.
Dr Truck maintenance expenses 280
Cr Cash 280
July 31 Declared and paid $580 cash dividend.
Dr Dividends 580
Cr Cash 580
trial balance
Dr Cash $5,220
Dr Accounts receivable $4,410
Dr Supplies $860
Dr Prepaid insurance $1,680
Dr Vehicles $7,680
Cr Common stock $11,500
Cr Accounts payable $5,180
Cr Service revenue $5,950
Dr Wages expense $1,920
Dr Truck maintenance expenses $280
Dr Dividends $580
totals $22,630 $22,630
adjusting entries
The only adjusting entry that we can record appropriately is insurance expense:
Dr Insurance expense 140
Cr prepaid insurance 140
We should also record adjusting entries for
- wages expense (after January 20th)
- depreciation expense (truck)
- supplies expense
but we are not given any amounts.
adjusted trial balance
Dr Cash $5,220
Dr Accounts receivable $4,410
Dr Supplies $860
Dr Prepaid insurance $1,540
Dr Vehicles $7,680
Cr Common stock $11,500
Cr Accounts payable $5,180
Cr Service revenue $5,950
Dr Wages expense $1,920
Dr Truck maintenance expenses $280
Dr Insurance expense $140
Dr Dividends $580
totals $22,630 $22,630