Question

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ES Accounting Cycle Review 4-01 ai Mike Greenberg opened Martinez Window Washing Co. on July 1, 2020. During July, the following transactions were completed. July 1 Owner invested $10,800 cash in the company. 1 Purchased used truck for $7,200, paying $1,800 cash and the balance on account. 3 Purchased cleaning supplies for $810 on account. 5 Paid $1,680 cash on a 1-year Insurance policy effective July 1. 12 Billed customers $3,330 for cleaning services performed. 18 Paid $900 cash on amount owed on truck and $450 on amount owed on cleaning supplies. 20 Paid $1,800 cash for employee salaries. 21 Collected $1,440 cash from customers billed on July 12. 25 Billed customers $2,250 for cleaning services performed. 31 Paid $260 for maintenance of the truck during month. 31 Owner withdrew $540 cash from the company. Your answer is correct. Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent order presented in the problem.)

Answer 1

The post closing trial balance is prepared once the books have been closed and would just have the permanent accounts. This means only the balance sheet accounts - assets, liabilities and equity exist in a post closing trial balance.

The post closing trial balance of Martinez Window will be as follows:

Accounts Titles	Debit($)	Credit($)	Workings
Cash	4,810		10800-1800-1680-900-450-1800+1440-260-540
Capital account - Mike Greenberg		10,800
Truck	7,200
Accounts Payable		4,860	7200-1800+810-900-450
Cleaning Supplies	810
Prepaid Insurance	1,680
Accounts Receivables	4140		3330-1440+2250
Retained Earnings		3,520	3330-1800+2250-260
Withdrawal account - Mike Greenberg	540
Total	19,180	19,180

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