Oriole Clark opened Oriole’s Cleaning Service on July 1, 2022. 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 $2300 on account 5 Paid $1680 cash on a 1-year insurance policy effective July 1 12 Billed customers $4400 for cleaning services 18 Paid $1400 cash on amount owed on truck and $1400 on amount owed on cleaning surprises. 20 Paid $2500 cash for employee salaries 21 Collected $3300 cash from customers billed on July 12 25 Billed customers $5900 for cleaning services 31 Paid $350 for the monthly gasoline bill for the truck 31 Withdraw $5700 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. Unbilled and uncollected revenue for services performed at July 31 were $2600 Depreciation on equipment for the month was $500 One-twelfth of the insurance expired. An inventory count shows $500 of cleaning supplies on hand at July 31. Accrued but unpaid employee salaries were $1040. Trial Balance Adjustments Adjusted Trial Balance Income Statment Balance Sheet Account Titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 6470 6470 6470 Accounts Receivable 7000 2600 9600 9600 Supplies 2300 1800 500 500 Prepaid Insurance 1680 140 1540 1540 Equipment 9200 9200 9200 Accounts Payable 4700 4700 4700 Owner’s Capital 20200 20200 20200 Owner’s Drawings 5700 5700 5700 Service Revenue 10300 12900 12900 Gasoline Expense 350 350 350 Salaries and Wages Expense 2500 1040 2600 3540 3540 Totals 35200 35200 Depreciations Expense 500 500 500 Accum. Depr - Equipment 500 500 500 Insurance Expense 140 140 140 Supplies Expense 1800 1800 1800 Salaries and Wages Payable 1040 1040 1040 Totals 6080 6080 39340 39340 6330 12900 33010 26440 Net Income 6570 6570 Totals 12900 12900 33010 33010 Prepare an Income Statement Revenues Service Revenue 12900 Expenses Salaries and Wages Expense 3540 Gasoline Expense 350 Insurance Expense 140 Depreciation Expense 500 Supplies Expense 1800 Total Expenses 6330 Net Income / (Loss) 6570 Prepare the owner’s equity statement Owner’s Capital, July 1 0 Add Net Income / (Loss) 6570 Investments 20200 26770 26770 Less Drawings 5700 Owner’s Capital, July 31 21070 Prepare a classified balance sheet Assets Current Assets Cash 6470 Accounts Receivable 9600 Supplies 500 Prepaid insurance 1540 Total Current Assets 18110 Property, Plant, and Equipment Equipment 9200 Less: Accumulated Depreciation-Equipment 500 8700 Total Assets 26810 Liabilities and Owner’s Equity Current Liabilities Accounts Payable 4700 Salaries and Wages Payable 1040 Total Current Liabilities 5740 Owner’s Equity Owner’s Capital 21070 Total Liabilities and Owner’s Equity 26810 Journalize closing entries and complete the closing process. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order displayed in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to close revenue account enter a debit amount enter a credit amount enter an account title to close revenue account enter a debit amount enter a credit amount (To close revenue account) choose a transaction date enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount (To close expense accounts) choose a transaction date enter an account title to close net income or loss enter a debit amount enter a credit amount enter an account title to close net income or loss enter a debit amount enter a credit amount (To close net income / (loss)) choose a transaction date enter an account title to close drawings enter a debit amount enter a credit amount enter an account title to close drawings enter a debit amount enter a credit amount (To close drawings)

Oriole Clark opened Oriole’s Cleaning Service on July 1, 2022. 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 $2300 on account 5 Paid $1680 cash on a 1-year insurance policy effective July 1 12 Billed customers $4400 for cleaning services 18 Paid $1400 cash on amount owed on truck and $1400 on amount owed on cleaning surprises. 20 Paid $2500 cash for employee salaries 21 Collected $3300 cash from customers billed on July 12 25 Billed customers $5900 for cleaning services 31 Paid $350 for the monthly gasoline bill for the truck 31 Withdraw $5700 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. Unbilled and uncollected revenue for services performed at July 31 were $2600 Depreciation on equipment for the month was $500 One-twelfth of the insurance expired. An inventory count shows $500 of cleaning supplies on hand at July 31. Accrued but unpaid employee salaries were $1040. Trial Balance Adjustments Adjusted Trial Balance Income Statment Balance Sheet Account Titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 6470 6470 6470 Accounts Receivable 7000 2600 9600 9600 Supplies 2300 1800 500 500 Prepaid Insurance 1680 140 1540 1540 Equipment 9200 9200 9200 Accounts Payable 4700 4700 4700 Owner’s Capital 20200 20200 20200 Owner’s Drawings 5700 5700 5700 Service Revenue 10300 12900 12900 Gasoline Expense 350 350 350 Salaries and Wages Expense 2500 1040 2600 3540 3540 Totals 35200 35200 Depreciations Expense 500 500 500 Accum. Depr - Equipment 500 500 500 Insurance Expense 140 140 140 Supplies Expense 1800 1800 1800 Salaries and Wages Payable 1040 1040 1040 Totals 6080 6080 39340 39340 6330 12900 33010 26440 Net Income 6570 6570 Totals 12900 12900 33010 33010 Prepare an Income Statement Revenues Service Revenue 12900 Expenses Salaries and Wages Expense 3540 Gasoline Expense 350 Insurance Expense 140 Depreciation Expense 500 Supplies Expense 1800 Total Expenses 6330 Net Income / (Loss) 6570 Prepare the owner’s equity statement Owner’s Capital, July 1 0 Add Net Income / (Loss) 6570 Investments 20200 26770 26770 Less Drawings 5700 Owner’s Capital, July 31 21070 Prepare a classified balance sheet Assets Current Assets Cash 6470 Accounts Receivable 9600 Supplies 500 Prepaid insurance 1540 Total Current Assets 18110 Property, Plant, and Equipment Equipment 9200 Less: Accumulated Depreciation-Equipment 500 8700 Total Assets 26810 Liabilities and Owner’s Equity Current Liabilities Accounts Payable 4700 Salaries and Wages Payable 1040 Total Current Liabilities 5740 Owner’s Equity Owner’s Capital 21070 Total Liabilities and Owner’s Equity 26810 Journalize closing entries and complete the closing process. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order displayed in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to close revenue account enter a debit amount enter a credit amount enter an account title to close revenue account enter a debit amount enter a credit amount (To close revenue account) choose a transaction date enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount enter an account title to close expense accounts enter a debit amount enter a credit amount (To close expense accounts) choose a transaction date enter an account title to close net income or loss enter a debit amount enter a credit amount enter an account title to close net income or loss enter a debit amount enter a credit amount (To close net income / (loss)) choose a transaction date enter an account title to close drawings enter a debit amount enter a credit amount enter an account title to close drawings enter a debit amount enter a credit amount (To close drawings)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Oriole Clark opened Oriole’s Cleaning Service on July 1, 2022. 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 $2300 on account
5	Paid $1680 cash on a 1-year insurance policy effective July 1
12	Billed customers $4400 for cleaning services
18	Paid $1400 cash on amount owed on truck and $1400 on amount owed on cleaning surprises.
20	Paid $2500 cash for employee salaries
21	Collected $3300 cash from customers billed on July 12
25	Billed customers $5900 for cleaning services
31	Paid $350 for the monthly gasoline bill for the truck
31	Withdraw $5700 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.

Unbilled and uncollected revenue for services performed at July 31 were $2600
Depreciation on equipment for the month was $500
One-twelfth of the insurance expired.
An inventory count shows $500 of cleaning supplies on hand at July 31.
Accrued but unpaid employee salaries were $1040.

	Trial Balance	Adjustments	Adjusted Trial Balance	Income Statment	Balance Sheet
Account Titles	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	6470				6470				6470
Accounts Receivable	7000		2600		9600				9600
Supplies	2300			1800	500				500
Prepaid Insurance	1680			140	1540				1540
Equipment	9200				9200				9200
Accounts Payable		4700				4700				4700
Owner’s Capital		20200				20200				20200
Owner’s Drawings	5700				5700				5700
Service Revenue		10300				12900		12900
Gasoline Expense	350				350		350
Salaries and Wages Expense	2500		1040	2600	3540		3540
Totals	35200	35200
Depreciations Expense			500		500		500
Accum. Depr - Equipment				500		500				500
Insurance Expense			140		140		140
Supplies Expense			1800		1800		1800
Salaries and Wages Payable				1040		1040				1040
Totals			6080	6080	39340	39340	6330	12900	33010	26440
Net Income							6570			6570
Totals							12900	12900	33010	33010

Prepare an Income Statement

Revenues
Service Revenue		12900
Expenses
Salaries and Wages Expense	3540
Gasoline Expense	350
Insurance Expense	140
Depreciation Expense	500
Supplies Expense	1800
Total Expenses		6330
Net Income / (Loss)		6570

Prepare the owner’s equity statement

Owner’s Capital, July 1			0
Add
	Net Income / (Loss)	6570
	Investments	20200
			26770
			26770
Less
	Drawings		5700
Owner’s Capital, July 31			21070

Prepare a classified balance sheet

Assets
Current Assets
Cash	6470
Accounts Receivable	9600
Supplies	500
Prepaid insurance	1540
Total Current Assets		18110
Property, Plant, and Equipment
Equipment	9200
Less: Accumulated Depreciation-Equipment	500	8700
Total Assets		26810
Liabilities and Owner’s Equity
Current Liabilities
Accounts Payable	4700
Salaries and Wages Payable	1040
Total Current Liabilities		5740
Owner’s Equity
Owner’s Capital		21070
Total Liabilities and Owner’s Equity		26810

Journalize closing entries and complete the closing process. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order displayed in the problem.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date	enter an account title to close revenue account	enter a debit amount	enter a credit amount
	enter an account title to close revenue account	enter a debit amount	enter a credit amount
	(To close revenue account)
choose a transaction date	enter an account title to close expense accounts	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts	enter a debit amount	enter a credit amount
	(To close expense accounts)
choose a transaction date	enter an account title to close net income or loss	enter a debit amount	enter a credit amount
	enter an account title to close net income or loss	enter a debit amount	enter a credit amount
	(To close net income / (loss))
choose a transaction date	enter an account title to close drawings	enter a debit amount	enter a credit amount
	enter an account title to close drawings	enter a debit amount	enter a credit amount
	(To close drawings)

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