Financial Accounting: P4-8A Linda Blye opened Cardinal Window Washing Inc.

Financial Accounting

Linda Blye opened Cardinal Window Washing Inc. on July 1, 2010. During July the following transactions were completed.
July 1 Issued 11,000 shares of common stock for $11,000 cash.
1 Purchased used truck for $9,000, paying $2,000 cash and the balance on account.
3 Purchased cleaning supplies for $900 on account.
5 Paid $1,800 cash on 1-year insurance policy effective July 1.
12 Billed customers $3,200 for cleaning services.
18 Paid $1,000 cash on amount owed on truck and $500 on amount owed on cleaning supplies.
20 Paid $2,000 cash for employee salaries.
21 Collected $1,400 cash from customers billed on July 12.
25 Billed customers $2,500 for cleaning services.
31 Paid $260 for gas and oil used in the truck during month.
31 Declared and paid $600 cash dividend.

The chart of accounts for Cardinal Window Washing contains the following accounts:
Cash, Accounts Receivable, Cleaning Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation—Equipment,
Accounts Payable, Salaries Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue,
Gas & Oil Expense, Cleaning Supplies Expense, Depreciation Expense, Insurance Expense, Salaries Expense.

a. Journalize the July transactions. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
b. Post to the ledger accounts (Use T accounts).
c. Prepare a trial balance at July 31.
d. Journalize the following adjustments.
1. Services provided but unbilled and uncollected at July 31 were $1,700.
2. Depreciation on equipment for the month was $250.
3. One-twelfth of the insurance expired.
4. An inventory count shows $360 of cleaning supplies on hand at July 31.
5. Accrued but unpaid employee salaries were $400.
e. Post adjusting entries to the T accounts.
f. Prepare an adjusted trial balance.
g. Prepare the income statement and a retained earnings statement for July and a classified balance sheet at July 31.
h. Journalize and post closing entries and complete the closing process. (If answer is zero, please enter 0, do not leave any fields blank.)
i. Prepare a post-closing trial balance at July 31.
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