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 $2,300 on account. 5 Paid $1,680 cash on a 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. Prepare a worksheet including trial balance, adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet.

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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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 $2,300 on account.
5		Paid $1,680 cash on a 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.

Prepare a worksheet including trial balance, adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet.

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