Tidy & Cleaning Services provides cleaning and housekeeping services to both households and businesses. The entity prepares financial statements at the end of each month. The following information is provided in relation to the business’s operations in the month of July 2021. On 1 July 2021, the business signed an advertising agreement, that costs $10,800 for six (6) months plus $1 per each click on their advertisements, with an online website to promote its business for the next six months. The agreement stated $1,800 per month will need to be paid in advance at the beginning of each month, $1 per each click on their ads will be paid at the end of the 6th month agreement. A $1,800 advance was paid on 1 July.On 2 July, rent of $39,000 is paid for a 6-months period from 1 July to 31 December 2021.Cleaning supplies account had a debit balance of $750 at the beginning of the month. On 10 July, the business purchased $5,900 cleanings supplies. At the end of the month, a physical count shows that $1,050 of supplies are still on hand.On 15 July, Marco Motel paid the business $28,000 in advance to do the cleaning of their guest rooms for the next five months. By the end of July, 10% of the cleaning work has been completed.The business has 12 part-time employees who each earn $220 per day. They all worked 20 days in the month of July. They were paid for the 20 days on 31 JulyA 1-year insurance policy of $3,600 was purchased on 1 January 2021. Required:Record the transactions occurred in the month of July in the general journal. Prepare the necessary adjusting entries at the end of the month.

A general journal is a subsidiary journal that records the journal entries for an accounting period.…

Answered: Required: Record the transactions…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Tidy & Cleaning Services provides cleaning and housekeeping services to both households and businesses. The entity prepares financial statements at the end of each month. The following information is provided in relation to the business’s operations in the month of July 2021.

On 1 July 2021, the business signed an advertising agreement, that costs $10,800 for six (6) months plus $1 per each click on their advertisements, with an online website to promote its business for the next six months. The agreement stated $1,800 per month will need to be paid in advance at the beginning of each month, $1 per each click on their ads will be paid at the end of the 6^th month agreement. A $1,800 advance was paid on 1 July.
On 2 July, rent of $39,000 is paid for a 6-months period from 1 July to 31 December 2021.
Cleaning supplies account had a debit balance of $750 at the beginning of the month. On 10 July, the business purchased $5,900 cleanings supplies. At the end of the month, a physical count shows that $1,050 of supplies are still on hand.
On 15 July, Marco Motel paid the business $28,000 in advance to do the cleaning of their guest rooms for the next five months. By the end of July, 10% of the cleaning work has been completed.
The business has 12 part-time employees who each earn $220 per day. They all worked 20 days in the month of July. They were paid for the 20 days on 31 July
A 1-year insurance policy of $3,600 was purchased on 1 January 2021.

Required: