Question

PRINTER VERSION BACK 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. Journalize and post the July transactions to the general ledger. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record cash invested in the business) (To record purchase of truck)

please solve this question all the parts to be solved are inserted

Answer 1

Sunland's Window Washing Journal entries Date Account 1-Jul Cash L. Chang, Capital Credit Calculation Ref Debit 26,000 26,000 25,800 1-Jul Vehicles Cash Notes Payable 5,800 20,000 2,800 1-Jul Prepaid Insurance Cash 2,800 4,200 5-Jul Accounts Receivable Service revenue 4,200 2,080 12-Jul Supplies Accounts Payable 2,080 3,000 18-Jul Salaries expense Cash 3,000 9,500 25-Jul Accounts Receivable Service revenue 9,500 4,200 28-Jul Cash Accounts Receivable 4,200 550 31-Jul Repairs expense Cash 550 2,500 2,500 31-Jul L. Chang, Drawings Cash Adjusting entries 31-Jul Accounts Receivable Service revenue 2,000 2,000 430 =25,800/5*1/12 31-Jul Depreciation expense Accumulated Depreciation-Vehicles 430 233 =2,800/12 31-Jul Insurance expense Prepaid Insurance 233 1,360 =2,080-720 31-Jul Supplies expense Supplies 1,360 1,800 31-Jul Salaries expense Salaries Payable 1,800 110 =20,000*6.6%*1/12 110 31-Jul Interest expense Interest Payable Closing entries Date Account 31-Jul Service revenue Income Summary Credit Calculation Debit 15,700 15,700 7,483 31-Jul Income Summary Repairs expense Salaries expense Supplies expense Depreciation expense Insurance expense Interest expense 550 4,800 1,360 430 233 110 8,217 =15,700-7,483 31-Jul Income Summary L. Chang, Capital 8,217 2,500 31-Jul L. Chang, Capital L. Chang, Drawings 2,500

Balance Balance J1 덕덕덕덕덕덕 26,000 20,200 17,400 14,400 18,600 18,050 15,550 Date Item Ref Debit Credit Accounts Receivable 5-Jul 4,200 25-Jul 9,500 28-Jul 4,200 31-Jul Adjusting J2 2,000 4,200 13,700 9,500 11,500 2,080 720 2,800 2,567 25,800 430 2,080 Prepaid Insurance 1-Jul J1 2,800 31-Jul Adjusting J2 233 Accumulated Depreciation-Vehicles 31-Jul Adjusting 430 Salaries Payable 31-Jul Adjusting J2 1,800 Notes Payable 1-Jul J1 20,000 L. Chang, Drawings 31-Jul J1 2,500 31-Jul Closing J3 1,800 12 110 Sunland's Window Washing T Accounts Date Item Ref Debit Credit Cash 1-Jul 26,000 1-Jul 5,800 1-Jul 2,800 18-Jul 3,000 28-Jul 4,200 31-Jul 550 31-Jul 2,500 Supplies 12-Jul J12 ,080 31-Jul Adjusting 1,360 Vehicles 1-Jul 25,800 Accounts Payable 12-Jul J1 2,080 Interest Payable 31-Jul Adjusting 110 L. Chang, Capital 1-Jul 26,000 31-Jul Closing 8,217 31-Jul Closing 2,500 Income Summary 31-Jul Closing 15,700 31-Jul Closing J3 7,483 31-Jul Closing 8,217 Service revenue 5-Jul 4,200 25-Jul 9,500 31-Jul Adjusting 2,000 31-Jul Closing J3 15,700 Salaries expense 18-Jul J1 3,000 31-Jul Adjusting J2 1,800 31-Jul Closing 4,800 Depreciation expense 31-Jul Adjusting 430 31-Jul Closing 430 20,000 2,500 26,000 34,217 31,717 2,500 15,700 8,217 13 J1 4,200 13,700 15,700 550 Repairs expense 550 J3 31-Jul 31-Jul Closing 550 Supplies expense 31-Jul Adjusting 12 1,360 31-Jul Closing 13 3,000 4,800 1,360 1,360 430 Insurance expense 31-Jul Adjusting 22 233 31-Jul Closing J3 233 233 - J2 110 110 31-Jul Adjusting 31-Jul Closing 110

Unadjusted TB Debit Credit 15,550 9,500 2,080 2,800 25,800 Sunland's Window Washing Account Cash Accounts Receivable Supplies Prepaid Insurance Vehicles Accumulated Depreciation-Vehicles Accounts Payable Salaries Payable Interest Payable Notes Payable L. Chang, Capital L. Chang, Drawings Income Summary Service revenue Repairs expense Salaries expense Supplies expense Depreciation expense Insurance expense Interest expense Totals Adjusted TB Debit Credit 15,550 11,500 720 2,567 25,800 430 2,080 1,800 110 20,000 26,000 2,500 Post closing TB Debit Credit 15,550 11,500 720 2,567 25,800 430 2,080 1,800 110 20,000 31,717 2,080 20,000 26,000 2,500 13,700 15,700 550 3,000 550 4,800 1,360 430 233 110 66,120 61,780 61,780 66,120 56,137 56,137

15,700 Sunland's Window Washing Income Statement For month ended July 31, 2021 Revenue Service revenue Expenses Salaries expense Repairs expense Supplies expense Depreciation expense Insurance expense Interest expense Total Expenses Net Income 4,800 550 1,360 430 233 110 7,483 8,217 Statement of Owners Equity For month ended July 31, 2021 Capital, July 1, 2021 Add: Investments Net Income 26,000 8,217 Less: Drawings Capital, July 31, 2021 34,217 (2,500) 31,717

Sunland's Window Washing Balance Sheet as of July 31, 2021 Assets Current Assets: Cash Accounts Receivable Supplies Prepaid Insurance Total Current Assets Liabilities & Owners Equity Current Liabilities: 15,550 Accounts Payable 11,500 Salaries Payable 720 Interest Payable 2,567 Notes Payable - current portion 30,337 Total Current Liabiltiies 2,080 1,800 110 5,000 8,990 15,000 =20,000-5,000 Fixed Assets: Vehicles Accumulated Depreciation-Vehicles Vehicles, net Non-Current Liabilities: 25,800 Notes Payable (430) 25,370 Total Liabiltiies 23,990 Owners Equity: Capital 31,717 Total Assets 55,707 Total Liabilities & Owners Equity 55,707