Question

CUN Ice. P4.5A (LO 1, 2, 4) Anya Clark opened Anya's Cleaning Service on July 1, 2020. During July, the fol- lowing transactions were completed. July 1 Anya invested $20,000 cash in the business. 1 Purchased used truck for $12,000, paying $4,000 cash and the balance on account. 3 Purchased cleaning supplies for $2,100 on account. 5 Paid $1,800 cash on a 1-year insurance policy effective July 1. 12 Billed customers $4,500 for cleaning services. 18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies. 20 Paid $2.800 cash for employee salaries. 21 Collected $3,400 cash from customers billed on July 12. 25 Billed customers $6,000 for cleaning services 31 Paid $350 for the monthly gasoline bill for the truck. 31 Withdraw 55,600 cash for personal use. The chart of accounts for Anya's Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Paya- ble, No. 301 Owner's Capital, No. 306 Owner's Drawings, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. Instructions a. Journalize and post the July transactions. Use page Jl for the journal and the three-column form of account. MacBook Air Du 17 W

adjusting Entries, closing entries, general ledger, worksheet, income statement, balance sheet and post closing trial balance sheet

Answer 1

Anya's Cleaning Service Journal Enteries Date Particulars 1.7.2020 Cash a/c To Owner's Capital (Capital invested) Dr. Debit in $ Credit in $ 20000 20000 1.7.2020 12000 4000 Truck a/c Dr. To Cash To Accounts Payable (Truck purchased) 8000 3.7.2020 2100 Supplies a/c Dr. To Accounts Payable (Supplies on account) 2100 5.7.2020 Dr. 1800 Prepaid Insurance a/c To Cash (1 year insurance paid) 1800 4500 12.7.2020 Accounts Receivable a/c Dr. To Service Revenue (Services provided on account) 4500 2900 18.7.2020 Accounts Payable a/c Dr. To Cash (Creditors paid) 2900 2800 20.7.2020 Salaries and Wages Expense a/c Dr. To Cash (Salaries paid) 2800 3400 21.7.2020 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 3400 6000 25.7.2020 Accounts Receivable a/c Dr. To Service Revenue (Services provided on account) 6000 Dr. 350 31.7.2020 Gasoline Expense a/c To Cash (Gasoline expense paid) 350 Dr. 5600 31.7.2020 Owner's Drawings a/c To Cash (Personal drawings) 5600

Worksheet For the period ending 31.7.2020 Particulars Cash Accounts Receivable Supplies Prepaid Insurance Truck Accum. Depre - Truck Accounts Payable Salaries and Wages Payable Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Gasoline Expense Depreciation Expense Insurance expense Supplies Expense Totals Unadjusted Adjustments Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 5950 5950 5950 7100 2700 9800 9800 2100 1500 600 600 1800 150 1650 1650 12000 12000 12000 500 500 500 7200 7200 7200 1000 1000 1000 20000 20000 21300 5600 5600 10500 2700 13200 2800 1000 3800 350 350 500 500 150 150 1500 1500 37700 37700 5850 5850 41900 41900 3 0000 30000 13200 Statement of Income For the period ending 31.7.2020 Service Revenue Less: Salaries and Wages Expense Gasoline Expense Depreciation Expense Insurance expense Supplies Expense Net Income 3800 350 500 150 1500 6300 6900 Statement of Owner's Equity For the period ending 31.7.2020 Owner's Capital Add:Net Income 20000 6900 26900 -5600 21300 Less:Owner's Drawings

Amounts in $ Amounts in $ Balance sheet As at 31.7.2020 Assets Current Assets Cash Accounts Receivable Supplies Prepaid Insurance Amounts in $ Amounts in $ Liabilities Current Liabilities 5950 Accounts Payable 9800 Salaries and Wages Payable 600 1650 18000 7200 1000 8200 Non Current Assets Truck Accum. Depre - Truck Total Assets 12000 -500 Owner's Equity 11500 Owner's Capital 29500 Total Liabilities & Equity 21300 29500