Question

Accounting Cycle Review 4-01 a-i 

Mike Greenberg opened Flounder Window Washing Co. on July 1, 2020. During July, the following transactions were completed 

July 1 Owner invested $10,100 cash in the company. 

1 Purchased used truck for $6,720, paying $1,680 cash and the balance on account.

3 Purchased cleaning supplies for $760 on account. 

5 Paid $1,560 cash on a 1-year insurance policy effective July 1. 

12 Billed customers $3,110 for cleaning services performed 

18 Paid $840 cash on amount owed on truck and $420 on amount owed on cleaning supplies. 

20 Paid $1,680 cash for employee salaries. 

21 Collected $1,340 cash from customers billed on July 12. 

25 Billed customers $2,100 for cleaning services performed. 

31 Paid $240 for maintenance of the truck during month. 

31 Owner withdrew $500 cash from the company. 

 

Answer 1

1.

Cash
Beg. bal.	0	7/1	1,680
7/1	10,100	7/5	1,560
7/21	1,340	7/18	1,260
		7/20	1,680
		7/31	240
		7/31	500
End. bal.	4,520
Accounts Receivable
Beg. bal.	0	7/21	1,340
7/12	3,110
7/25	2,100
Adj. 1	1,430
Adj. bal.	5,300
Supplies
Beg. bal.	0	Adj. 4	490
7/3	760
End. bal.	270
Prepaid Insurance
Beg. bal.	0	Adj. 3	130
7/5	1,560
End. bal.	1,430
Equipment
Beg. bal.	0
7/1	6,720
End. bal.	6,720
Accumulated Depreciation : Equipment
		Beg. bal.	0
		Adj. 2	150
		End.bal.	150
Accounts Payable
7/18	1,260	Beg. bal.	0
		7/1	5,040
		7/3	760
		End. bal.	4,540
Salaries and Wages Payable
		Beg. bal.	0
		Adj. 5	340
		End. bal.	340
Owner's Capital
		Beg. bal.	0
		7/1	10,100
		End. bal.	10,100
Owner's Drawings
Beg. bal.	0
7/31	500
End. bal.	500
Service Revenue
		7/12	3,110
		7/25	2,100
		Adj. 1	1,430
		End. bal.	6,640
Salaries Expense
7/20	1,680
Adj. 5	340
	2,020
Maintenance and Repairs Expense
7/31	240
	240
Supplies Expense
Adj. 4	490
	490
Depreciation Expense
Adj. 2	150
	150
Insurance Expense
Adj. 3	130
	130

Adjusting entries:

Date	Account Titles	Debit	Credit
July 31		$	$
a.	Accounts Receivable	1,430
	Service Revenue		1,430
b.	Depreciation Expense	150
	Accumulated Depreciation : Equipment		150
c.	Insurance Expense	130
	Prepaid Insurance		130
d.	Supplies Expense	490
	Supplies		490
e.	Salaries and Wages Expense	340
	Salaries and Wages Payable		340

Flounder Window Washing Co. Adjusted Trial Balance July 31, 2020
Account Titles	Debit	Credit
	$	$
Cash	4,520
Accounts Receivable	5,300
Supplies	270
Prepaid Insurance	1,430
Equipment	6,720
Accumulated Depreciation : Equipment		150
Accounts Payable		4,540
Salaries and Wages Payable		340
Owner's Capital		10,100
Owner's Drawing	500
Service Revenue		6,640
Salaries and Wages Expense	2,020
Supplies Expense	490
Maintenance and Repairs Expense	240
Insurance Expense	130
Depreciation Expense	150
Totals	$ 21,770	$ 21,770

Flounder Window Washing Co. Income Statement For the month ended July 31, 2020
Revenues
Service Revenue		$ 6,640
Expenses
Salaries and Wages Expense	2,020
Supplies Expense	490
Insurance Expense	130
Maintenance and Repairs Expense	240
Depreciation Expense	150
Total Expenses		3,030
Net Income		$ 3,610

Answer 2