Week 6 Acc290 problem 4 8
Minda Furgeson
Week 6 Acc/290 problem 4-8
Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed.
July 1
Issued 12,000 shares of common stock for $12,000 cash.
July 1
Purchased used truck for $8,000, 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 $3,700 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 $1,600 cash from customers billed on July 12.
July 25
Billed customers $2,500 for cleaning services.
July 31
Paid $290 for maintenance of the truck during month.
July 31
Declared and paid a $600 cash dividend.
Journalize July Transaction (A)
Date
Account/Description
Debit
Credit
July 1
Cash
12,000
Common Stock
12,000
(Record Issue of Stock)
July 1
Equipment
8,000
Accounts Payable
6,000
Cash
2,000
(Record purchase of truck)
July 3
Cleaning Supplies
900
Accounts Payable
900
July 5
Prepaid Insurance
1,800
Cash
1,800
July 12
Accounts Receivable
3,700
Service Revenue
3,700
July 18
Accounts Payable
1,500
Cash
1,500
July 20
Salaries Expense
2,000
Cash
2,000
July 21
Cash
1,600
Accounts Receivable
1,600
July 25
Accounts Receivable
2,500
Service Revenue
2,500
July 31
Maintenance
290
Cash
290
(Maintenance Paid)
July 31
Dividends
600
Cash
600
(Declared and paid a dividend)
(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 $180.
3.
One-twelfth of the insurance expired.
4.
An inventory count shows $320 of cleaning supplies on hand at July 31.
5.
Accrued but unpaid employee salaries were $400.
Date
Accounts/Description
Debit
Credit
1. July 31
Accounts Receivable
1,700
Week 6 Acc/290 problem 4-8
Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed.
July 1
Issued 12,000 shares of common stock for $12,000 cash.
July 1
Purchased used truck for $8,000, 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 $3,700 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 $1,600 cash from customers billed on July 12.
July 25
Billed customers $2,500 for cleaning services.
July 31
Paid $290 for maintenance of the truck during month.
July 31
Declared and paid a $600 cash dividend.
Journalize July Transaction (A)
Date
Account/Description
Debit
Credit
July 1
Cash
12,000
Common Stock
12,000
(Record Issue of Stock)
July 1
Equipment
8,000
Accounts Payable
6,000
Cash
2,000
(Record purchase of truck)
July 3
Cleaning Supplies
900
Accounts Payable
900
July 5
Prepaid Insurance
1,800
Cash
1,800
July 12
Accounts Receivable
3,700
Service Revenue
3,700
July 18
Accounts Payable
1,500
Cash
1,500
July 20
Salaries Expense
2,000
Cash
2,000
July 21
Cash
1,600
Accounts Receivable
1,600
July 25
Accounts Receivable
2,500
Service Revenue
2,500
July 31
Maintenance
290
Cash
290
(Maintenance Paid)
July 31
Dividends
600
Cash
600
(Declared and paid a dividend)
(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 $180.
3.
One-twelfth of the insurance expired.
4.
An inventory count shows $320 of cleaning supplies on hand at July 31.
5.
Accrued but unpaid employee salaries were $400.
Date
Accounts/Description
Debit
Credit
1. July 31
Accounts Receivable
1,700