Question

Problem 4-05A a-g (Part Level Submission) (Video) Pharoah Clark opened Pharoah's Cleaning Service on July 1, 2020. During July, the following transactions were completed. July 1 Pharoah invested $20,000 cash in the business. 1 Purchased used truck for $9,000, paying $4,100 cash and the balance on account. 3 Purchased cleaning supplies for $2,000 on account. 5 Paid $1,680 cash on 1-year insurance policy effective July 1. 12 Billed customers $4,400 for cleaning services. 18 Paid $1,400 cash on amount owed on truck and $1,300 on amount owed on cleaning supplies. 20 Paid $2,600 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 $340 for the monthly gasoline bill for the truck. 31 Withdraw $5,700 cash for personal use.

Answer 1

Pharoah's Cleaning Service Worksheet For the period ending 31.7.2020 Particulars Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Owner's Capital Owner's Drawings Service Revenue Gasoline Expense Salaries and Wages Expense Totals Depreciation Expense Accum. Depre - Equip. Insurance Expense Supplies Expense Salaries and Wages Payable Totals Net Income Totals Unadjusted Adjustments Adjusted Income Statement Balance sheet Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 6280 6280 6280 7000 2600 9600 9600 2000 1500 500 500 1680 140 1540 1540 9000 9000 9000 4200 4200 4200 20000 20000 20000 5700 5700 10400 2600 13000 13000 340 340 340 2600 1010 3610 3610 34600 34600 400 400 400 400 400 400 140 140 140 1500 1500 1500 1010 1010 1010 5650 5650 38610 38610 5990 13000 26920 25610 7010 1310 13000 13000 26920 26920

Adjusting Enteries Trans. Particulars Accounts Receivable a/c Dr. To Service Revenue (Revenue receivable) Debit in $ Credit in $ 2600 2600 400 Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) 400 3 140 Insurance Expense a/c Dr. To Prepaid Insurance (Insurance expensed) 1680 /12 140 1500 Supplies Expense a/c Dr. To Supplies (Supplies expensed) 2000 - 500 1500 15 Salaries and Wages Expense a/c Dr. To Salaries and Wages Payable (Salary accrued) 1010