Reference no: EM132840255
Question - Jim's Cleaning Services prepares financial statements at the end of each month. The following information is in relation to the month of July.
1. On 1 July, rent of $3,600 for the 6-month period ending 31 December is paid.
2. A 1-year insurance policy is purchased on 1 July for $1,560.
3. On 10 July, the Cross Hotel paid the business $2,800 in advance for doing their cleaning for the next 3 months. 30% of the cleaning work has been provided in the month of July.
4. The cleaning supplies of $2,340 was purchased on 15 July. The supplies account had a $260 debit balance on 1 July and $220 of supplies are on hand as at 31 July.
5. The business has two part-time employees who each earn $190 per day. They were both worked 16 days in the month. They were paid for the 14 days on 28 July, but not for the last 2 days for which they have worked after 28 July.
Required -
a) Record the above transactions occurred in the month of July in the general journal.
b) Make the necessary adjusting entries at the end of the month of July.
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