Question

3 Mike Greenberg opened Grouper Window Washing Co. on July 1, 2020. During July, the following transactions were complet July 1 Owner invested $10,300 cash in the company. 1 Purchased used truck for $6,880, paying $1,720 cash and the balance on account Purchased cleaning supplies for $770 on account. 5 Paid $1,560 cash on a 1-year insurance policy effective July 1. 12 Billed customers $3,180 for cleaning services performed Paid $860 cash on amount owed on truck and $430 on amount owed on cleaning supplies. Pald $1,720 cash for employee salaries. 21 Collected $1,380 cash from customers billed on July 12. 25 Billed customers $2,150 for cleaning services performed 31 Paid $250 for maintenance of the truck during month Owner withdrew $520 cash from the company 18 20 31 Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit wy. O Capital 30 2 3 4 % 5 & 7 6 8 9 0 E R T C C o P S D F G Н. J к x Х с C V B N M mand

Answer 1

1. Journal Entries -

Credit Gouper Window Washing Company Journal Entries Date Accounts Title Debit July 1 Cash $ 10,300 M. Greenberg Capital (To record Captail contribution made) $ 10,300 July 1 Equipment $ 6,880 Cash Accounts Payable (To record equipment purchased) $ 1,720 $ 5,160 July 3 Supplies $ 770 Accounts Payable (To record supplies purchased) $ 770 July 5 Prepaid Insurance $ 1,560 Cash $ 1,560 (To record Insurance paid in advance for 1 year) July 12 Accounts Receivable $ 3,180 Cleaning Service Revenue (To record revenue earned on account) $ 3,180 July 18 Accounts Payable $ 1,290 Cash (To record payment made on account) $ 1,290 July 20 Salaries Expenses $ 1,720 Cash (To record salaries paid) $ 1,720 July 21 Cash $ 1,380 Accounts Receivable $ 1,380 (To Record amount received on account) July 25 Accounts Receivable $ 2,150 Cleaning Service Revenue (To record revenue earned on account) $ 2,150 July 31 Maintenance Expenses $ 250 Cash $ (To record maintenance Expense on truck) 250 July 31 M. Greenberg Withdrawal $ 520 Cash (To record withdrawal made) $ 520

2. Ledgers -

Salaries Payable July 31$ 340 July 1 July 21 Cash $ 10,300 July 1 $ 1,720 $ 1,380 July 5 $ 1,560 July 18 $ 1,290 July 20 $ 1,720 July 31 $ 250 July 31 $ 520 July 31 $ 340 July 31 $ 4,620 M. Greenberg Capital $ 10,300 July 1 $ 11,680 $ 11,680 July 31 $ 10,300 Supplies 770 July 31 July 3 $ $ 490 July 31 $ 280 M. Greenberg Withdrawal July 31$ 520 July 31 $ 520 Prepaid Insurance $ 1,560 July 31 July 5 $ 130 July 31 $ 1,430 Cleaning Service Revenue July 12$ 3,180 July 25 $ 2,150 July 31 $ 1,460 July 31 $ 6,790 $ 1,380 July 12 July 25 July 31 Accounts Receivable $ 3,180 July 21 $ 2,150 $ 1,460 July 31 $ 5,410 July 20 July 31 Salaries Expenses $ 1,720 $ 340 Equipment $ 6.880 July 31 $ 2,060 July 1 July 31 $ 6,880 Maintenance Expenses July 31 $ 250 July 31$ 250 Accumulated Depreciation July 31 $ 150 July 31 $ 150 Depreciation Expense $ 150 July 31 July 31 $ 150 July 18 Accounts Payable $ 1,290 July 1 July 3 $ 5,160 $ 770 Insurance Expense S 130 July 31 $ 4,640 July 31 July 31 $ 130 Supplies Expense $ 490 July 31 July 31 $ 490

3. Unadjusted Trial Balance -

Credit Gouper Window Washing Company Unadjusted Trial Balance Accounts Title Debit Cash $ 4,620 Supplies $ 770 Prepaid Insurance $ 1,560 Accounts Receivable $ 3,950 Equipment $ 6,880 Accounts Payable M. Greenberg Capital M. Greenberg Withdrawal $ 520 Cleaning Service Revenue Salaries Expenses $ 1,720 Maintenance Expenses $ 250 $ 4,640 $ 10,300 $ $ 5,330 Total $ 20,270 $ 20,270

4. Adjusting Entries -

Date Credit Gouper Window Washing Company Adjusting Entries Accounts Title Debit July 31 Accounts Receivable $ 1,460 Cleaning Service Revenue (To record revenue earned on account) $ 1,460 150 July 31 Depreciation Expense $ Accumulated Depreciation $ (To record depreciation expense incurred) 150 $ July 31 Insurance Expense $ 130 Prepaid Insurance (To record insurance expense incurred) $ 130 July 31 Supplies Expense $ 490 Supplies (To record supplies utilised) $ $ 490 July 31 Salaries Expenses $ 340 Salaries Payable (To record salaries expense accrued) $ 340

5. Adjusted Trial Balance -

Credit Gouper Window Washing Company Adjusted Trial Balance Accounts Title Debit Cash $ 4,620 Supplies $ 280 Prepaid Insurance $ 1,430 Accounts Receivable $ 5,410 Equipment $ 6,880 Accumulated Depreciation Accounts Payable Salaries Payable M. Greenberg Capital M. Greenberg Withdrawal $ 520 Cleaning Service Revenue Salaries Expenses $ 2,060 Maintenance Expenses $ 250 Depreciation Expense $ 150 Insurance Expense $ 130 Supplies Expense $ 490 $ 150 $ 4,640 $ 340 $ 10,300 $ 6,790 Total $ 22,220 $ 22,220

6. Income Statement -

Gouper Window Washing Company Income Statement July 31 Cleaning Service Revenue $ 6,790 Expenses: Salaries Expenses Maintenance Expenses Depreciation Expense Insurance Expense Supplies Expense Total expenses $ 2,060 $ 250 $ 150 $ 130 $ 490 $ 3,080 Net Income $ 3,710

7. Owner's Equity Statement -

Gouper Window Washing Company Owner's Equity Statement July 31 M. Greenberg Capital, Opening $ 10,300 Add: Net Income $ 3,710 Less: Withdrawals $ (520) $ 3,190 M. Greenberg Capital, Closing $ 13,490

8. Balance Sheet -

Gouper Window Washing Company Balance Sheet July 31 Assets Current Assets: Cash Supplies Prepaid Insurance Accounts Receivable Total Current Assets $ 4,620 $ 280 $ 1,430 $ 5,410 $ 11,740 Equipment Accumulated Depreciation $ 6,880 $ (150) $ 6,730 Total Assets $ 18,470 Liabilities and Owners Equity Current Liabilities: Accounts Payable Salaries Payable Total Current Liabilities $ 4,640 $ 340 $ 4,980 Total Liabilities $ 4,980 Owners Equity: M. Greenberg Capital $ 13,490 Total Liabilities and Owners Equity $ 18,470

9. Closing Entries -

Credit Gouper Window Washing Company Closing Entries Date Accounts Title Debit July 31 Cleaning Service Revenue $ 6,790 Income Summary (To record closing entry of revenue) $ 6,790 July 31 Income Summary $ 3,080 Salaries Expenses Maintenance Expenses Depreciation Expense Insurance Expense Supplies Expense (To record closing entries of Expenses) $ 2,060 $ 250 $ 150 $ 130 $ 490 July 31 Income Summary $ 3,710 M. Greenberg Capital $ 3,710 (To record balance of income summary transferred) July 31 M. Greenberg Capital $ 520 M. Greenberg Withdrawal $ 520 (To record withdrawal transfer to capital account)

10. Post Closing Trial Balance -

Credit Gouper Window Washing Company Post Closing Trial Balance Accounts Title Debit Cash $ 4,620 Supplies $ 280 Prepaid Insurance $ 1,430 Accounts Receivable $ 5,410 Equipment $ 6,880 Accumulated Depreciation Accounts Payable Salaries Payable M. Greenberg Capital $ 150 $ 4,640 $ 340 $ 13,490 Total $ 18,620 $ 18,620