Question

Mike Greenberg opened Indigo Window Washing Co. on July 1, 2020. During July, the following transactions were completed. July 1 1 3 5 12 18 Owner invested $13,900 cash in the company. Purchased used truck for $9,280, paying $2,320 cash and the balance on account Purchased cleaning supplies for $1,040 on account. Paid $2,040 cash on a 1-year insurance policy effective July 1. Billed customers $4,290 for cleaning services performed. Paid $1,160 cash on amount owed on truck and $580 on amount owed on cleaning supplies. Paid $2,320 cash for employee salaries. Collected $1,860 cash from customers billed on July 12. Billed customers $2,900 for cleaning services performed. Paid $340 for maintenance of the truck during month. Owner withdrew $700 cash from the company. 20 21 25 31 31

Answer 1

Journal entries
S.no.	Accounts title and explanations		Debit $	Credit $
01-Jul	Cash account			13,900
	Mike Capital				13,900
	(for capital introduced)
01-Jul	Truck equipment			9280
	Cash account				2320
	Accounts payable				6960
	(for truck purchased)
03-Jul	Cleaning Supplies			1040
	Accounts payable				1040
	(for supplies purchased)
05-Jul	Prepaid Insurance			2040
	Cash account				2040
	(for premium paid)
12-Jul	Accounts receivable			4,290
	Service revenue				4,290
	(for service revenue earned)
18-Jul	Accounts payable			1740
	Cash account	(1160+580)		1740
	(for payment made)
20-Jul	Salaries expense			2320
	Cash account				2320
	(for salaries expense paid)
21-Jul	Cash account			1860
	Accounts receivable			1860
	(for cash received)
25-Jul	Accounts receivable			2900
	Service revenue				2900
	(for service performed)
31-Jul	Maintenance expense		340
	Cash account				340
	(for maintenance of truck paid)
31-Jul	Mike's withdrawals			700
	Cash account				700
	(for drawings made)