Current Attempt in Progress Mike Greenberg opened Flounder Window Washing Co. on July 1, 2020. During July, the following transactions were completed. July 1 Owner invested $ 10,100 cash in the company. 1 Purchased used truck for $ 6,720, paying $ 1,680 cash and the balance on account. 3 Purchased cleaning supplies for $ 760 on account. 5 Paid $ 1,560 cash on a 1-year insurance policy effective July 1. 12 Billed customers $ 3,110 for cleaning services performed. 18 Paid $ 840 cash on amount owed on truck and $ 420 on amount owed on cleaning supplies. 20 Paid $ 1,680 cash for employee salaries. 21 Collected $ 1,340 cash from customers billed on July 12. 25 Billed customers $ 2,100 for cleaning services performed. 31 Paid $ 240 for maintenance of the truck during month. 31 Owner withdrew $ 500 cash from the company. (a) Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record cash invested in the business) (To record purchase of truck.) (To record maintenance of the truck) (To record owner withdraws) eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.16 (b) Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.) Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Owner's Capital Owner’s Drawings Service Revenue Maintenance and Repairs Expense Salaries and Wages Expense eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.16 (c) Prepare a trial balance at July 31. FLOUNDER WINDOW WASHING CO. Trial Balance Debit Credit $ $ Totals $ $ eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.17 (d) Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. Services performed but unbilled and uncollected at July 31 were $ 1,430. 2. Depreciation on equipment for the month was $ 150. 3. One-twelfth of the insurance expired. 4. A count shows $ 270 of cleaning supplies on hand at July 31. 5. Accrued but unpaid employee salaries were $ 340. Sr. Date Account Titles and Explanation Debit Credit 1. July 31 2. July 31 3. July 31 4. July 31 5. July 31 eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.17 (e) Post adjusting entries to the T-accounts. Cash 7/1 10,100 7/1 1,680 7/21 1,340 7/5 1,560 7/18 1,260 7/20 1,680 7/31 240 7/31 500 7/31 Bal. 4,520 Accounts Receivable 7/12 3,110 7/21 1,340 7/25 2,100 Supplies 7/3 760 Prepaid Insurance 7/5 1,560 Equipment 7/1 6,720 7/31 Bal. 6,720 Accumulated Depreciation-Equipment Accounts Payable 7/18 1,260 7/1 5,040 7/3 760 7/31 Bal. 4,540 Salaries and Wages Payable Owner's Capital 7/1 10,100 7/31 Bal. 10,100 Owner’s Drawings 7/31 500 Bal. 500 Service Revenue 7/12 3,110 7/25 2,100 Maintenance and Repairs Expense 7/31 240 Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense 7/20 1,680 eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.17 (f) Prepare an adjusted trial balance. FLOUNDER WINDOW WASHING CO. Trial Balance Debit Credit $ $ Totals $ $ eTextbook and Media List of Accounts Attempts: 0 of 3 used
Current Attempt in Progress Mike Greenberg opened Flounder Window Washing Co. on July 1, 2020. During July, the following transactions were completed. July 1 Owner invested $ 10,100 cash in the company. 1 Purchased used truck for $ 6,720, paying $ 1,680 cash and the balance on account. 3 Purchased cleaning supplies for $ 760 on account. 5 Paid $ 1,560 cash on a 1-year insurance policy effective July 1. 12 Billed customers $ 3,110 for cleaning services performed. 18 Paid $ 840 cash on amount owed on truck and $ 420 on amount owed on cleaning supplies. 20 Paid $ 1,680 cash for employee salaries. 21 Collected $ 1,340 cash from customers billed on July 12. 25 Billed customers $ 2,100 for cleaning services performed. 31 Paid $ 240 for maintenance of the truck during month. 31 Owner withdrew $ 500 cash from the company. (a) Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record cash invested in the business) (To record purchase of truck.) (To record maintenance of the truck) (To record owner withdraws) eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.16 (b) Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.) Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Owner's Capital Owner’s Drawings Service Revenue Maintenance and Repairs Expense Salaries and Wages Expense eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.16 (c) Prepare a trial balance at July 31. FLOUNDER WINDOW WASHING CO. Trial Balance Debit Credit $ $ Totals $ $ eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.17 (d) Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. Services performed but unbilled and uncollected at July 31 were $ 1,430. 2. Depreciation on equipment for the month was $ 150. 3. One-twelfth of the insurance expired. 4. A count shows $ 270 of cleaning supplies on hand at July 31. 5. Accrued but unpaid employee salaries were $ 340. Sr. Date Account Titles and Explanation Debit Credit 1. July 31 2. July 31 3. July 31 4. July 31 5. July 31 eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.17 (e) Post adjusting entries to the T-accounts. Cash 7/1 10,100 7/1 1,680 7/21 1,340 7/5 1,560 7/18 1,260 7/20 1,680 7/31 240 7/31 500 7/31 Bal. 4,520 Accounts Receivable 7/12 3,110 7/21 1,340 7/25 2,100 Supplies 7/3 760 Prepaid Insurance 7/5 1,560 Equipment 7/1 6,720 7/31 Bal. 6,720 Accumulated Depreciation-Equipment Accounts Payable 7/18 1,260 7/1 5,040 7/3 760 7/31 Bal. 4,540 Salaries and Wages Payable Owner's Capital 7/1 10,100 7/31 Bal. 10,100 Owner’s Drawings 7/31 500 Bal. 500 Service Revenue 7/12 3,110 7/25 2,100 Maintenance and Repairs Expense 7/31 240 Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense 7/20 1,680 eTextbook and Media List of Accounts Attempts: 0 of 3 used Question Part Score --/0.17 (f) Prepare an adjusted trial balance. FLOUNDER WINDOW WASHING CO. Trial Balance Debit Credit $ $ Totals $ $ eTextbook and Media List of Accounts Attempts: 0 of 3 used
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Topic Video
Question
Current Attempt in Progress
Mike Greenberg opened Flounder Window Washing Co. on July 1, 2020. During July, the following transactions were completed.
| July 1 | Owner invested $ 10,100 cash in the company. | ||
| 1 | Purchased used truck for $ 6,720, paying $ 1,680 cash and the balance on account. | ||
| 3 | Purchased cleaning supplies for $ 760 on account. | ||
| 5 | Paid $ 1,560 cash on a 1-year insurance policy effective July 1. | ||
| 12 | Billed customers $ 3,110 for cleaning services performed. | ||
| 18 | Paid $ 840 cash on amount owed on truck and $ 420 on amount owed on cleaning supplies. | ||
| 20 | Paid $ 1,680 cash for employee salaries. | ||
| 21 | Collected $ 1,340 cash from customers billed on July 12. | ||
| 25 | Billed customers $ 2,100 for cleaning services performed. | ||
| 31 | Paid $ 240 for maintenance of the truck during month. | ||
| 31 | Owner withdrew $ 500 cash from the company. |
(a)
Journalize the July transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
| (To record cash invested in the business) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (To record purchase of truck.) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (To record maintenance of the truck) | |||
|
|
|
|
|
|
|
|
|
|
|
|
| (To record owner withdraws) |
eTextbook and Media
List of Accounts
Attempts: 0 of 3 used
Question Part Score
--/0.16
(b)
Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.)
| Cash |
| Supplies |
| Prepaid Insurance |
| Equipment |
| Accounts Payable |
| Owner's Capital |
| Owner’s Drawings |
| Service Revenue |
| Maintenance and Repairs Expense |
| Salaries and Wages Expense |
eTextbook and Media
List of Accounts
Attempts: 0 of 3 used
Question Part Score
--/0.16
(c)
Prepare a trial balance at July 31.
|
FLOUNDER WINDOW WASHING CO.
Trial Balance |
|
|
||
|
Debit
|
Credit
|
|
|
|
$
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Totals |
$
|
$
|
eTextbook and Media
List of Accounts
Attempts: 0 of 3 used
Question Part Score
--/0.17
(d)
Journalize the following adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
| 1. | Services performed but unbilled and uncollected at July 31 were $ 1,430. | ||
| 2. | |||
| 3. | One-twelfth of the insurance expired. | ||
| 4. | A count shows $ 270 of cleaning supplies on hand at July 31. | ||
| 5. | Accrued but unpaid employee salaries were $ 340. |
|
Sr.
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
1.
|
July 31
|
|
|
|
|
|
|
|
||
|
2.
|
July 31
|
|
|
|
|
|
|
|
||
|
3.
|
July 31
|
|
|
|
|
|
|
|
||
|
4.
|
July 31
|
|
|
|
|
|
|
|
||
|
5.
|
July 31
|
|
|
|
|
|
|
|
eTextbook and Media
List of Accounts
Attempts: 0 of 3 used
Question Part Score
--/0.17
(e)
Post adjusting entries to the T-accounts.
| Cash | |||
| 7/1 | 10,100 | 7/1 | 1,680 |
| 7/21 | 1,340 | 7/5 | 1,560 |
| 7/18 | 1,260 | ||
| 7/20 | 1,680 | ||
| 7/31 | 240 | ||
| 7/31 | 500 | ||
| 7/31 Bal. | 4,520 |
| Accounts Receivable | |||
| 7/12 | 3,110 | 7/21 | 1,340 |
| 7/25 | 2,100 |
| Supplies | ||
| 7/3 | 760 |
| Prepaid Insurance | ||
| 7/5 | 1,560 |
| Equipment | |||
| 7/1 | 6,720 | ||
| 7/31 Bal. | 6,720 |
| Accounts Payable | |||
| 7/18 | 1,260 | 7/1 | 5,040 |
| 7/3 | 760 | ||
| 7/31 Bal. | 4,540 |
| Salaries and Wages Payable |
| Owner's Capital | |||
| 7/1 | 10,100 | ||
| 7/31 Bal. | 10,100 |
| Owner’s Drawings | |||
| 7/31 | 500 | ||
| Bal. | 500 |
| Service Revenue |
| 7/12 | 3,110 | ||
| 7/25 | 2,100 | ||
| Maintenance and Repairs Expense | ||
| 7/31 | 240 |
| Supplies Expense |
| Depreciation Expense |
| Insurance Expense |
| Salaries and Wages Expense | ||
| 7/20 | 1,680 |
eTextbook and Media
List of Accounts
Attempts: 0 of 3 used
Question Part Score
--/0.17
(f)
Prepare an adjusted trial balance.
|
FLOUNDER WINDOW WASHING CO.
Trial Balance |
|
|
||
|
Debit
|
Credit
|
|
|
|
$
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Totals |
$
|
$
|
eTextbook and Media
List of Accounts
Attempts: 0 of 3 used
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education