Question

Problem 4-5A Lee Chang opened Sunland's Window Washing on July 1, 2021. In July, the following transactions were completed: July 1 Invested $26,000 cash in the business. 1 Purchased a used truck for $25,800, paying $5,800 cash and signing a note payable for the balance. 1 Paid $2,800 on a one-year insurance policy, effective July 1. 5 Billed customers $4,200 for deaning services. 12 Purchased supplies for $2,080 on account. 18 Paid $3,000 for employee salaries. 25 Billed customers $9,500 for cleaning services. 28 Collected $4,200 from customers billed on July 5. 31 Paid $550 for repairs on the truck. 31 Withdrew $2,500 cash for personal use.

1. journalise and post the july transactions to the general ledger

2. prepare a trial balance at july 31

Answer 1

k Lee chang opened sunland's window washing Journal ento: Date Account Name July cash Debit credit $ 26,000 $ 26,000 TO Lee's capital TouCK To cash TO Note - payable 25,800 5800 $ 20.000 Prepaid Insurance TO cash $ 2800 $ 2800 Account Receivable TO service revenue a $ 4200 $ 4200 supplies TO Accounts payable $ 2080 $ 2080 $ 3000 salaries Expense TO cash 3000 2S - Account Receivable TO service Revenue 9500 $ 9500 28 cash TO Account Roceivable $4200 $ 4200 31 Repair Expense to cash $ 550 $ 550

Debit credit Date 31 Account Name Lee Drawing To cash 8 2500 $ 2500 > Gleneral Ledger : cash & 26000 July 2 July 28 I & 4200 July I Guly I July 18 July 31 J414 31 $ 5800 > 2800 $ 3000 $ 550 $ 2500 Balance 15,550 July 5 4200 Accounts Receivable IS 4200 July 28 $ 500 S9500 Suly 25 Balance July I Balance Prepaid Insurance 12800 & 12800 July 12 Balance supplies 2080 $ 2080 July I Balance THICK 25.800 & 25800

Accounts payable Lauly 12 Il Balance 2080 2080 NOTE Payable 3414I Balance 20.000 20,000 $ Lee capital byly I Balance F 26000 F 26000 buly 31 Hoon Lee Drawing asoo | 2500 Balance service revenue 4 JU145 July 25 I Balance 4200 9500 13700 T 14 solany expense July 18 Balance $ 3000 & 3000 July 31 Balance Repair expense S50 1550

credit Lee's sunland's window washing Trial Balance 31 August - 2021 Debit cash 15.550 Account Receivable 9.500 Prepaid Insurance 2, 800 Supplies 2080 TRUCK 25800 Accounts Payable Note payable Lee's capital Lee's Drawing $ 2500 service Revenue salaries Expense 3000 Repair expense 550 TOTal 61780 $ 2080 $ 20,000 26000 A $ 13700 A A A $61780