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Post adjusting entries to the t accounts problem

09/04/2021 Client: muhammad11 Deadline: 2 Day

Resource: Ch. 4 of Financial Accounting

Complete Problem 4-8A.

P4-8A Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed.

July 1 Issued 12,000 shares of common stock for $12,000 cash. 1 Purchased used truck for $8,000, paying $2,000 cash and the balance on account. 3 Purchased cleaning supplies for $900 on account. 5 Paid $1,800 cash on 1-year insurance policy effective July 1. 12 Billed customers $3,700 for cleaning services.18 Paid $1,000 cash on amount owed on truck and $500 on amount owed on cleaning supplies. 20 Paid $2,000 cash for employee salaries. 21 Collected $1,600 cash from customers billed on July 12. 25 Billed customers $2,500 for cleaning services. 31 Paid $290 for maintenance of the truck during month. 31 Declared and paid $600 cash dividend.

The chart of accounts for Pro Window Washing contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation— Equipment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Ex- pense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense.

Instructions (a) Journalize the July transactions. (b) Post to the ledger accounts. (Use T accounts.) (c) Prepare a trial balance at July 31. (d) Journalize the following adjustments. (1) Services provided but unbilled and uncollected at July 31 were $1,700. (2) Depreciation on equipment for the month was $180. (3) One-twelfth of the insurance expired. (4) An inventory count shows $320 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $400. (e) Post adjusting entries to the T accounts. (f) Prepare an adjusted trial balance. (g) Prepare the income statement and a retained earnings statement for July and a clas- sified balance sheet at July 31. (h) Journalize and post closing entries and complete the closing process. (i) Prepare a post-closing trial balance at July 31.

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