Question

Journalize the July transactions AND Journalize the adjustments. Use the provided Chart of Accounts.

# 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

Solution:

Dr.		Cr.
Date	Particulars	Amount ($)	Amount ($)
1	Cash A/c Dr.	9,000
	To Capital A/c		9,000
	(For comon stock issued for cash)
1	Trucks A/c Dr.	6,000
	To Cash A/c		3,000
	To Vendor 1		3,000
	( For used trucks purchased and 3000 cash paid and rest on account
3	Cleaning Supplies A/c Dr.	900
	To Vendor 2		900
	(For cleaning supplies purchased on account)
5	Insurance Premium A/c Dr.	100
	To Cash A/c		100
	(For insurance premium paid for july month)
	Prepaid Insurance A/c Dr.	1100
	To Insurance A/c		1100
	(For insurance paid in advance for 11 months)
12	Customer 1 Dr.	2500
	To Sales A/c		2500
	(Customer billed for services)
13	No Entry
18	Vendor1 Dr.	1000
	Vendor2 Dr.	500
	To cash A/c		1500
	(For cash paid $1000 for amount owed on trucks and $500 on amount owed on cleaning Supplies)
20	Salaries A/c Dr.	1200
	To Cash A/c		1200
	(For Salaries Paid in Cash)
20	No Entry
21	Cash A/c Dr.	1400
	To customer 1		1400
	(For cash collected from customer billed on july 12)
25	Customer 2 A/c Dr.	2,000
	To Sales A/c		2,000
	( For cleaning services offered and customer billed)
26	No Entry
31	Gas and Oil A/c Dr.	200
	To Cash A/c		200
	(For cash paid for gas and oil for truck)
31	No Entry
31	Retained Earnings A/c Dr.	300
	To Dividend Payable A/c		300
	(For dividend Declared)
	Dividend A/c Dr.	300
	To Cash A/c		300
	(For Dividend Paid)
31	No Entry

Adjustment Entry

Dr.		Cr.
Date	Particulars	Amount ($)	Amount($)
31	Account Receivable A/c Dr.	1000
	To customer		1000
	(For services provided but uncollected amount)
31	Depreciation on Equipment A/c Dr.	200
	To Equipment A/c		200
	(For Depreciation on Equipment for month)
31	Insurance A/c Dr.	100
	To Prepaid Insurance A/c		100
	(1/12 of insurance Expired)
31	Closing Stock A/c Dr.	600
	To Cost of Good Sold A/c		600
	(For cleaning Supplies on hand)
31	Salaries A/c Dr.	400
	To outstanding Salaries A/c		400
	(For salaries accrued but unpaid)