Oriole Clark opened Oriole’s Cleaning Service on July 1, 2020. During July, the following transactions were completed. July 1   Oriole invested $20,200 cash in the business. 1   Purchased used truck for $9,200, paying $4,000 cash and the balance on account. 3   Purchased cleaning supplies for $2,300 on account. 5   Paid $1,680 cash on 1-year insurance policy effective July 1. 12   Billed customers $4,400 for cleaning services. 18   Paid $1,400 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies. 20   Paid $2,500 cash for employee salaries. 21   Collected $3,300 cash from customers billed on July 12. 25   Billed customers $5,900 for cleaning services. 31   Paid $350 for the monthly gasoline bill for the truck. 31   Withdraw $5,700 cash for personal use.     Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet. (1)   Unbilled and uncollected revenue for services performed at July 31 were $2,600. (2)   Depreciation on equipment for the month was $500. (3)   One-twelfth of the insurance expired. (4)   An inventory count shows $500 of cleaning supplies on hand at July 31. (5)   Accrued but unpaid employee salaries were $1,040

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Oriole Clark opened Oriole’s Cleaning Service on July 1, 2020. During July, the following transactions were completed.

July 1   Oriole invested $20,200 cash in the business.
1   Purchased used truck for $9,200, paying $4,000 cash and the balance on account.
3   Purchased cleaning supplies for $2,300 on account.
5   Paid $1,680 cash on 1-year insurance policy effective July 1.
12   Billed customers $4,400 for cleaning services.
18   Paid $1,400 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies.
20   Paid $2,500 cash for employee salaries.
21   Collected $3,300 cash from customers billed on July 12.
25   Billed customers $5,900 for cleaning services.
31   Paid $350 for the monthly gasoline bill for the truck.
31   Withdraw $5,700 cash for personal use.

 

 
Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet.

(1)   Unbilled and uncollected revenue for services performed at July 31 were $2,600.
(2)   Depreciation on equipment for the month was $500.
(3)   One-twelfth of the insurance expired.
(4)   An inventory count shows $500 of cleaning supplies on hand at July 31.
(5)   Accrued but unpaid employee salaries were $1,040.
ORIOLE'S CLEANING SERVICE
Worksheet
Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Titles
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
Owner's Capital
Owner's Drawings
Service Revenue
Gasoline Expense
Salaries and Wages Expense
Totals
Depreciation Expense
Accum. Depr.-Equipment
Insurance Expense
Supplies Expense
Salaries and Wages Payable
Totals
Net Income
Totals
Transcribed Image Text:ORIOLE'S CLEANING SERVICE Worksheet Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Owner's Capital Owner's Drawings Service Revenue Gasoline Expense Salaries and Wages Expense Totals Depreciation Expense Accum. Depr.-Equipment Insurance Expense Supplies Expense Salaries and Wages Payable Totals Net Income Totals
ORIOLE'S CLEANING SERVICE
Income Statement
$4
%24
%24
>
>
Transcribed Image Text:ORIOLE'S CLEANING SERVICE Income Statement $4 %24 %24 > >
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