Carma Garcia opened Shifting Sands Cleaning Service on August 1, 2019. During August, the company completed the following transactions: Aug1 Carma Garcia invested $45,530 cash and $8,765 of cleaning equipment in the business. 1 Purchased a used truck for $10,500, paying $4,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,985 on account. 5 Paid $1,800 on a one-year insurance policy, effective August 1. 8 Received $1,650 from customer for future cleaning services. 12 Billed customers $5,830 for cleaning services. 18 Paid $2,000 of amount owed on truck. 20 Paid $1,672 for employee salaries. 21 Collected $3,795 from customers billed on August 12. 25 Billed customers $4,369 for cleaning services. 31 Paid gasoline for the month on the truck, $325. 31 Owner withdrew $1,000 for personal use. Adjustments: Aug31 Earned but unbilled fees at August 31 were $2,145. Depreciation on truck for the month was $175. Earned $450 of payment received on August 8. One-twelfth of the insurance expired. An inventory count shows $547 of cleaning supplies on hand at August 31. Accrued but unpaid employee salaries were $689. REQUIRED (a)Journalize and post the August transactions. Use page J1 for the journal(b)Prepare a trial balance at August 31(c)Journalize and post the adjusting entries. Use page J2 for the journal(d)Prepare an adjusted trial balance at August 31(e)Prepare the Income Statement and Statement of Owners Equity for August. (f)Prepare a classified Balance Sheet at August 31, 2019(g)Journalize and post the closing entries. Use page J3 for the journal.(h)Prepare a post-closing trial balance at August 31
Carma Garcia opened Shifting Sands Cleaning Service on August 1, 2019. During August, the company completed the following transactions:
Aug1 Carma Garcia invested $45,530 cash and $8,765 of cleaning equipment in the business.
1 Purchased a used truck for $10,500, paying $4,000 cash and the balance on account.
3 Purchased cleaning supplies for $1,985 on account.
5 Paid $1,800 on a one-year insurance policy, effective August 1.
8 Received $1,650 from customer for future cleaning services.
12 Billed customers $5,830 for cleaning services.
18 Paid $2,000 of amount owed on truck.
20 Paid $1,672 for employee salaries.
21 Collected $3,795 from customers billed on August 12.
25 Billed customers $4,369 for cleaning services.
31 Paid gasoline for the month on the truck, $325.
31 Owner withdrew $1,000 for personal use.
Adjustments:
Aug31 Earned but unbilled fees at August 31 were $2,145.
Depreciation on truck for the month was $175.
Earned $450 of payment received on August 8.
One-twelfth of the insurance expired.
An inventory count shows $547 of cleaning supplies on hand at August 31.
Accrued but unpaid employee salaries were $689.
REQUIRED (a)Journalize and post the August transactions. Use page J1 for the journal(b)Prepare a
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 5 images
