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Heidi Jara Opened Jara S Cleaning Service On July 1 2015

Heidi Jara opened Jara's Cleaning Service on July 1, 2015. During July, the business received $20,000 from stockholders, purchased a truck for $9,000 and cleaning supplies for $2,100. Revenues of $10,500 were billed and $3,400 was collected from customers, while expenses of $6,800 were paid. On July 31, adjustments were made for unbilled revenues, depreciation, insurance, and supplies.

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80 views1 page

Heidi Jara Opened Jara S Cleaning Service On July 1 2015

Heidi Jara opened Jara's Cleaning Service on July 1, 2015. During July, the business received $20,000 from stockholders, purchased a truck for $9,000 and cleaning supplies for $2,100. Revenues of $10,500 were billed and $3,400 was collected from customers, while expenses of $6,800 were paid. On July 31, adjustments were made for unbilled revenues, depreciation, insurance, and supplies.

Uploaded by

trilocksp Singh
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Heidi Jara opened Jara s Cleaning Service on July 1 2015

Heidi Jara opened Jara's Cleaning Service on July 1, 2015. During July, the following
transactions were completed.July 1 Stockholders invested $20,000 cash in the business in
exchange for common stock.1 Purchased used truck for $9,000, paying $4,000 cash and the
balance on account.3 Purchased cleaning supplies for $2,100 on account.5 Paid $1,800 cash
on a 1-year insurance policy effective July 1.12 Billed customers $4,500 for cleaning services.18
Paid $1,500 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 $3,400 cash from customers
billed on July 12.25 Billed customers $6,000 for cleaning services.31 Paid $350 for the monthly
gasoline bill for the truck.31 Paid a $5,600 cash dividend.The chart of accounts for Jara's
Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable,
No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated
Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No.
311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary,
No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711
Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages
Expense.Instructions(a) Journalize and post the July transactions. Use page J1 for the journal
and the three-column form of account.(b) Prepare a trial balance at July 31 on a worksheet.(c)
Enter the following adjustments on the worksheet and complete the worksheet.(1) Unbilled and
uncollected revenue for services performed at July 31 were $2,700.(2) Depreciation on
equipment for the month was $500.(3) One-twelfth of the insurance expired.(4) An inventory
count shows $600 of cleaning supplies on hand at July 31.(5) Accrued but unpaid employee
salaries were $1,000.(d) Prepare an income statement and a retained earnings statement for
July and a classified balance sheet at July 31.(e) Journalize and post adjusting entries. Use
page J2 for the journal.(f) Journalize and post closing entries and complete the closing process.
Use page J3 for the journal.(g) Prepare a post-closing trial balance at July 31.View Solution:
Heidi Jara opened Jara s Cleaning Service on July 1 2015
SOLUTION-- http://solutiondone.online/downloads/heidi-jara-opened-jara-s-cleaning-service-on-
july-1-2015/

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