Question

Hello, please make sure I journalized these transactions correctly. Then please help make a Trial Balance Sheet and Income Statement in good form. I listed the information below.

# Day 1 Description Issued $9,000 of common stock for $9,000 of cash. 1 2 1 Purchased used truck for $6,000, paying $3,000 in cash and the balance on account. 3 3 Purchased cleaning supplies for $900 on account. 4 5 Paid $1,200 cash on a 1-year insurance policy, effective July 1. Billed customers $2,500 for cleaning services. 5 12 6 13 Brett got a phone call from a manager of a large office building (Axis Building). The manager asked Brett to prepare a bid sheet for washing all ofhis windows 4 times per month. 7 18 Paid $1,000 cash on amount owed on truck and $500 on amount owed on cleaning supplies. 8 20 Paid $1,200 cash for employee salaries. 9 20 Brett met with the manager of the large office building (Axis Building) and submitted a bid of $5,500 for complete window washing maintenance 4 times per month. The manager liked the bid but had to discuss this large a contract with the owner. Brett is almost sure the work will come in starting August 1. 10 21 Collected $1,400 cash from customers billed on July 12. 11 25 Billed customers $2,000 for cleaning services. 12 26 Brett got a phone call from the manager of the Axis Building. The owner was willing to pay $5,000 per month for 4 window washings. Brett considered the offer and said it seemed acceptable for him. The manager said to bring over the contract and start during the week of August 5th. انا 31 Paid cash for gas and oil for month for truck of $200. 14 31 When he picked up the truck after servicing the maintenance man told him the truck should be winterized before November. The cost for all the work would be $75. Brett made an appointment for winterization of the truck on September 13.

Answer 1

Went through all the journal entries and yes they are perfect. Herein an attachment for the solution of trial balance, income statement and balance sheet as well.

TRIAL BALANCE ( as on 31st July) Particulars DEBIT CREDIT 9000 5800 300 600 100 1100 5600 common Stock Equipment Cleaning Supply expense Cleaning Supply Inventory cclosing) Insurance Expense Prepaid Insurance Expense Service Revenue Salary expense csalanes payable Gas L oil expense Retained Earnings Depreciation Expense (Equipment) Cash Accounts Payables Accounts Receivables 1600 400 200 300 200 3 000 2400 4200 TOTAL 17,400 17,400

INCOME STATEMENT as on 31st July Particulars Notes Amount $ Revenues : service Revenue 5600 TOTAL REVENUEN (A) 5600 Expenses :- Cleaning supply Expense Depreciation Expense Gas & Oil Expense Salaries Expense Insurance Expense 300 200 200 1600 100 TOTAL EXPENSES (B) 2400 NET INCOME (A-8) 3200

Balance sheet ason 31st July $ Amount Amount 9000 EQUITIES & LIABILITIES common stock Reserves & Surblius:- Retained earnings Net Income current Habilities to provisions : Accounts payables Salanes payables (300) 2200 2900 2400 400 2800 EQUITIES & LIABILITIES 14, 700 ASSETS NON CURRENT ASSETS Equipment 5800 CURRENT ASSETS Accounts Receivables Cash Prepaid Insurance Cleaning Supplies Inventory 4200 3000 1100 600 8900 ASSETS 14 700