Question

SPARKLE CLEANING SERVICE Problem Data For the Month Ended July 31, 2016 Fred Severini opened SPARKLE Cleaning Service on July 1, 2016. During July, the company completed the following transactions. July 1 Stockholders invested cash in the business in exchange for common stock. $15,000 1 Purchased a used cleaning truck on account. $12,000 3 Purchased cleaning supplies on account. $1,800 5 Paid on a one-year insurance policy, effective July 1. $2,100 12 Billed customers for cleaning services. $4,400 18 Paid on amount owed on truck. $4,000 20 Paid employee salaries. $2,000 21 Collected from customers billed on July 12. $2,400 25 Billed customers for cleaning services. $2,200 31 Paid gasoline for the month on the truck. $500 31 Declared and paid a cash dividend. $600 The chart of accounts for SPARKLE Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gasoline Expense, No. 634 Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense.

Answer 1

1. Ledger Accounts -

SPARKLE CLEANING SERVICE Ledger Account For the month ended July 31, 2016 Cash Date Explanation Ref. Debit July 1 Common Stock $ 15,000 July 5 Prepaid Insurance July 18 Accounts Payable July 20 Salaries and Wages Expenses July 21 Accounts Receivable $ 2,400 July 31 Gasoline Expense July 31 Dividend No. 101 Credit Balance $ 15,000 $ 2,100 $ 12,900 $ 4,000$ 8,900 $ 2,000 $ 6,900 $ 9,300 $ 500$ 8,800 $ 600 $ 8,200 Accounts Receivable Date Explanation Ref. July 12 Service Revenue July 21 Cash July 25 Service Revenue Debit $ 4,400 No. 112 Credit Balance $ 4,400 $ 2,400 S 2,000 $ 4,200 $ 2,200 No. 128 Supplies Explanation Accounts Payable Ref. Credit Date July 3 Balance Debit 1,800 $ $ 1,800 Prepaid Insurance Explanation Ref. Credit Date July 5 Debit 2,100 No. 130 Balance $ 2,100 Cash $ Equipment Explanation Ref. Accounts Payable Date July 1 Credit Debit $ 12,000 No. 157 Balance $ 12,000 Accumulated Depreciation - Equipment Explanation Ref. Debit No. 158 Balance Date Credit Debit Accounts Payable Date Explanation Ref. July 1 Equipment July 3 Supplies July 18 Accounts Payable No. 201 Credit Balance $ 12,000 $ 12,000 $ 1,800 $ 13,800 $ 9,800 $ 4,000 Salaries and Wages Payable Explanation Ref. No. 212 Balance Date Debit Credit Common Stock Explanation Ref. Debit Date July 1 No. 311 Credit Balance $ 15,000 $ 15,000 Cash Retained Earnings Explanation Ref. No. 320 Balance Date Debit Credit Dividends Ref. Credit Date Explanation July 31 Dividend Debit 600 No. 332 Balance $ 600 Debit Service Revenue Date Explanation Ref. July 12 Accounts Receivable July 25 Accounts Receivable No. 400 Credit Balance $ 4,400 $ 4,400 $ 2,200 $ 6,600 Income Summary Explanation Ref. No. 350 Balance Date Debit Credit Gasoline Expenses Explanation Ref. Credit Date July 31 Cash Debit $ 500 No. 633 Balance $ 500 Supplies Expenses Explanation Ref. No. 634 Balance Date Debit Credit Depreciation Expense Explanation Ref. No. 711 Balance Date Debit Credit Insurance Expense Explanation Ref. No. 722 Balance Date Debit Credit Salaries and Wages Expenses Explanation Ref. Credit Date July 2 Debit 2,000 No. 726 Balance $ 2,000 Cash

Note - No Adjusting Entries Provided in the question hence some accounts are showing blank.