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ACC/290 – 40918998 / WileyPLUS Assignment Week Four

P4-8A

Linda Blye opened Cardinal Window Washing Inc. on July 1, 2010. During July the following transactions were completed.

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

Journalize the July transactions. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Date Account/Description Debit Credit
July 1 [removed] [removed]  
            [removed]   [removed]
  (To record the issuance of stock)    
July 1 [removed] [removed]  
            [removed]   [removed]
             [removed]   [removed]
  (To record the purchase of a truck)    
July 3 [removed] [removed]  
           [removed]   [removed]
July 5 [removed] [removed]  
           [removed]   [removed]
July 12 [removed] [removed]  
            [removed]   [removed]
July 18 [removed] [removed]  
            [removed]   [removed]
July 20 [removed] [removed]  
            [removed]   [removed]
July 21 [removed] [removed]  
            [removed]   [removed]
July 25 [removed] [removed]  
            [removed]   [removed]
July 31 [removed] [removed]  
            [removed]   [removed]
  (Paid for gas and oil)    
July 31 [removed] [removed]  
            [removed]   [removed]
  (Declared and paid a dividend)    

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.
Date Account/Description Debit Credit
1. July 31 [removed] [removed]  
             [removed]   [removed]
2. July 31 [removed] [removed]  
            [removed]   [removed]
3. July 31 [removed] [removed]  
            [removed]   [removed]
4. July 31 [removed] [removed]  
            [removed]   [removed]
5. July 31 [removed] [removed]  
            [removed]   [removed]

Post the July transactions to the ledger accounts. (Use T accounts.) Post adjusting entries to the T accounts. Post closing entries and complete the closing process. (If answer is zero, please enter 0, do not leave any fields blank.)

Cash   Accounts Payable
 7/1 [removed]   7/1 [removed]     7/18 [removed]   7/1 [removed] 
 7/21 [removed]   7/5 [removed]   

 

 

 7/3

[removed] 
     7/18 [removed]         7/31 Bal. [removed] 
     7/20 [removed]           
     7/31 [removed]   

Salaries Payable

 

 

 7/31

[removed] 

  

 

 

 7/31

[removed] 
 7/31 Bal. [removed]             7/31 Bal.

[removed] 
                 

Accounts Receivable

  

Common Stock
 7/12 [removed]   7/21 [removed]   

 

 

 7/1

[removed] 
 7/25 [removed]             7/31 Bal.

[removed] 

 7/31

 [removed] 

 

 

          
 7/31 Bal. [removed]       

Retained Earnings
         

 7/31

 [removed] 

 7/31

[removed] 

Cleaning Supplies

        7/31 Bal. [removed] 

 7/3

 [removed] 

 7/31

[removed] 

          
 7/31 Bal. [removed]        Dividends
           7/31 [removed]   7/31 [removed] 
     7/31 Bal [removed]     

Prepaid Insurance

    

 7/5

 [removed] 

 7/31

[removed] 

  

Income Summary
 7/31 Bal. [removed]         7/31 [removed]   7/31 [removed] 
         

 7/31

 [removed] 

 

 

Equipment

        7/31 Bal. [removed] 

 7/1

 [removed] 

 

 

          
 7/31 Bal. [removed]        Service Revenue
           7/31 [removed]   7/12 [removed] 

Accumulated Depreciation – Equipment

        7/25 [removed] 

 

  

 7/31

[removed] 

  

 

 

 7/31

[removed] 
     7/31 Bal. [removed]         7/31 Bal. [removed] 
                 
Gas and Oil Expense  

Insurance Expense

 7/31

 [removed] 

 7/31

[removed] 

  

 7/31

 [removed] 

 7/31

[removed] 
 7/31 Bal. [removed]         7/31 Bal. [removed]     
                 

Cleaning Supplies Expense

  

Salaries Expense

 7/31

 [removed] 

 7/31

[removed] 

    7/20 [removed]   7/31 [removed] 
 7/31 Bal. [removed]       

 7/31

 [removed] 

 

 
           7/31 Bal. [removed]     

Depreciation Expense

          

 7/31

 [removed] 

 7/31

[removed] 

          
 7/31 Bal. [removed]               

Complete the Trial Balance and Adjusted Trial Balance at July 31. (If an answer is zero, please enter 0, do not leave any fields blank.)

CARDINAL WINDOW WASHING INC.
Trial Balance

July 31, 2010
  Before Adjustment After Adjustment
  Debit  Credit Debit  Credit
Cash $[removed] $[removed] $[removed] $[removed]
Accounts Receivable [removed] [removed] [removed] [removed]
Cleaning Supplies [removed] [removed] [removed] [removed]
Prepaid Insurance [removed] [removed] [removed] [removed]
Equipment [removed] [removed] [removed] [removed]
Acc. Depr. – Equipment [removed] [removed] [removed] [removed]
Accounts Payable [removed] [removed] [removed] [removed]
Salaries Payable [removed] [removed] [removed] [removed]
Common Stock [removed] [removed] [removed] [removed]
Dividends [removed] [removed] [removed] [removed]
Service Revenue [removed] [removed] [removed] [removed]
Salaries Expense [removed] [removed] [removed] [removed]
Gas & Oil Expense [removed] [removed] [removed] [removed]
Depreciation Expense [removed] [removed] [removed] [removed]
Insurance Expense [removed] [removed] [removed] [removed]
Cleaning Supplies Expense

[removed]

[removed]

[removed]

[removed]
 

$[removed]

$[removed]

$[removed]

$[removed]

Complete the income statement and a retained earnings statement for July and a classified balance sheet at July 31 (List expenses from largest to smallest amount, e.g. 10, 5, 2. List assets in order of liquidity and liabilities from largest to smallest amount, e.g. 10, 5, 2.)

CARDINAL WINDOW WASHING INC.
Income Statement

[removed]
Revenues    
      [removed]   $[removed]
Expenses    
      [removed] $[removed]  
      [removed] [removed]  
      [removed] [removed]  
      [removed] [removed]  
      [removed]

[removed]

  
            Total Expenses  

[removed]
Net Income  

$[removed]
CARDINAL WINDOW WASHING INC.
Retained Earnings Statement

[removed]
[removed] $[removed]
Add: [removed]

[removed]
  [removed]
Less: [removed]

[removed]
[removed]

$[removed]
CARDINAL WINDOW WASHING INC.
Balance Sheet

[removed]
Assets
Current assets    
      [removed] $[removed]  
      [removed] [removed]  
      [removed] [removed]  
      [removed]

[removed]

  
            Total current assets   $[removed]
Property, plant, and equipment    
      [removed] [removed]  
   Less: [removed]

[removed]

[removed]
            Total assets  

$[removed]
Liabilities and Stockholders’ Equity
Current liabilities    
      [removed] $[removed]  
      [removed]

[removed]

  
           Total current liabilities   $[removed]
Stockholders’ equity    
      [removed] [removed]  
      [removed]

[removed]

  
           Total stockholders’ equity  

[removed]
            Total liabilities and stockholders’ equity  

$[removed]

Journalize the post closing entries. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Date Account/Description Debit Credit
July 31 [removed] [removed]  
            [removed]   [removed]
  (To close revenue accounts.)    
July 31 [removed] [removed]  
            [removed]   [removed]
            [removed]   [removed]
            [removed]   [removed]
            [removed]   [removed]
            [removed]   [removed]
  (To close expense accounts.)    
July 31 [removed] [removed]  
            [removed]   [removed]
  (To close income summary. )    
July 31 [removed] [removed]  
            [removed]   [removed]
  (To close dividends.)    

Complete the post closing Trial Balance below. (If answer is zero please enter 0, do not leave any fields blank.)

CARDINAL WINDOW WASHING INC.
Post-Closing Trial Balance

July 31, 2010
  Debit Credit
Cash $[removed] $[removed]
Accounts Receivable [removed] [removed]
Cleaning Supplies [removed] [removed]
Prepaid Insurance [removed] [removed]
Equipment [removed] [removed]
Accumulated Depreciation [removed] [removed]
Accounts Payable [removed] [removed]
Salaries Payable [removed] [removed]
Common Stock [removed] [removed]
Retained Earnings [removed]

[removed]
Dividends [removed] [removed]
Service Revenue [removed] [removed]
Salaries Expense [removed] [removed]
Gas & Oil Expense [removed] [removed]
Depreciation Expense [removed] [removed]
Insurance Expense [removed] [removed]
Cleaning Supplies Expense

[removed]

[removed]
 

$[removed]

$[removed]
 
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