Reference no: EM132212926
Question: New Era Cleaning Service, Inc. opened for business on July 1, 2010. During the month of July, the following transactions occurred:
July 1: Issued $18,000 of common stock for $18,000 cash.
July 1: Purchased a truck for $11,000. Paid $4,000 in cash and borrowed the remainder (long term) from the bank.
July 3: Purchased cleaning supplies for $900 on account.
July 5: Paid $1,800 on a one-year insurance policy, effective July 1.
July 12: Billed customers $4,800 for cleaning services.
July 18: Paid $1,500 of the amount owed on the truck.
July 18: Paid $500 of the amount owed on cleaning services.
July 20: Paid $1,700 for employee salaries.
July 21: Collected $1,200 from customers billed on July 12.
July 25: Billed customers $1,900 for cleaning services.
July 31: Paid gas and oil for the month on the truck, $500.
July 31: Paid a $800 dividend.
Please complete the following tasks:
Post the July transactions to the general journal and the general ledger "T" accounts.
Attention Students: There is an excel spreadsheet template attached to this unit's section that can be used for this assignment. Please feel free to copy the template and use it to fill-in your answers (the journal and general ledger entries).
This assignment is a continuing accounting case study that spans Unit 2, 3, and 4. Each subsequent unit's assignment is based on the results of the previous assignment. Although the templates provided have the tasks for all three units noted on them, please only perform the tasks assigned for the current unit.
Students please also take note that when you receive the answer sheets (next week) for these questions, a grading scale will be included. This will be in a yellow spreadsheet cells.
rom the results of last week's assignment,
Prepare an unadjusted trial balance;
Post the following adjustments:
(a) Earned but unbilled fees at July 31 were $1,400
(b) Depreciation for the month was $200
(c ) One-twelfth of the insurance expired
(d) An inventory count showed $300 of cleaning supplies remaining on July 31
(e) Accrued but unpaid employee salaries were $500
Prepare an adjusted trial balance.