Reference no: EM133135276

Question - Crane Clark opened Crane's Cleaning Service on July 1, 2022. During July, the following transactions were completed.

July 1 Crane invested $20,100 cash in the business.

July 1 Purchased used truck for $8,800, paying $4,200 cash and the balance on account.

July 3 Purchased cleaning supplies for $1,900 on account.

July 5 Paid $1,920 cash on a 1-year insurance policy effective July 1.

July 12 Billed customers $4,600 for cleaning services.

July 18 Paid $1,400 cash on amount owed on truck and $1,500 on amount owed on cleaning supplies.

July 20 Paid $2,600 cash for employee salaries.

July 21 Collected $3,300 cash from customers billed on July 12.

July 25 Billed customers $5,900 for cleaning services.

July 31 Paid $360 for the monthly gasoline bill for the truck.

July 31 Withdraw $5,600 cash for personal use.

Required -

A1) Journalize the July transactions.

A2) Post the July transactions.

B and C) Prepare a trial balance at July 31 on a worksheet. 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 $700 of cleaning supplies on hand at July 31.

(5) Accrued but unpaid employee salaries were $1,000.

D1) Prepare the income statement for July.

D2) Prepare the owner's equity statement for July.

D3) Prepare a classified balance sheet at July 31.

E1) Journalize adjusting entries.

E2) Post adjusting entries.

F1) Journalize closing entries and complete the closing process.

F2) Post closing entries.

G) Prepare a post-closing trial balance at July 31.