Xacc280
week 6 appendix G Comprehensive problem on pp 189-190 of Financial Accounting
Julie Molony opened Julie’s Maids Cleaning Service Inc
Axia
College of University of Phoenix (UoP) Principles of Accounting: Weygandt, J.
J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.).
Hoboken, NJ: Wiley.
Comprehensive Problem: Chapters 2 to
4 Julie Molony opened Julie’s Maids Cleaning Service Inc.
on
July 1, 2008. During July, the company completed the following transactions.
July
1 Issued $14,000 of common stock for $14,000 cash.1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account.
3 Purchased cleaning supplies for $800 on account.
5 Paid $1,800 on a one-year insurance policy, effective July 1.
12 Billed customers $3,800 for cleaning services.
18
Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning
supplies.
20
Paid $1,600 for employee salaries.
21
Collected $1,400 from customers billed on July 12.
25
Billed customers $1,500 for cleaning services.
31
Paid gas and oil for the month on the truck, $400.
31
Paid a $600 cash dividend.
The
chart of accounts for Julie’s Maids Cleaning Service contains the following
accounts: No. 101
Cash,
No. 112
Accounts
Receivable, No. 128
Cleaning
Supplies, No. 130
Prepaid
Insurance, No. 157
Equipment,
No. 158
Accumulated
Depreciation—Equipment, No. 201
Accounts
Payable, No. 212
Salaries
Payable, No. 311
Common
Stock, No.
320
Retained Earnings, No. 332
Dividends,
No. 350
Income
Summary, No. 400
Service
Revenue, No. 633
Gas
& Oil Expense, No. 634
Cleaning
Supplies Expense, No. 711
Depreciation
Expense, No. 722
Insurance
Expense, and No. 726
Salaries
Expense.
Instructions
(a)
Journalize and post the July transactions. Use page J1 for the journal.
(b)
Prepare a trial balance at July 31 on a worksheet.
(c)
Enter the following adjustments on the worksheet, and complete the worksheet.
(1)
Earned but unbilled fees at July 31 were $1,300.
(2)
Depreciation on equipment for the month was $200.
(3)
One-twelfth of the insurance expired.
(4)
An inventory count shows $100 of cleaning supplies on hand at July 31.
(5)
Accrued but unpaid employee salaries were $500.
(d)
Prepare the income statement and a retained earnings statement for July, and a
classified balance sheet at July 31, 2008.
(e)
Journalize and post the adjusting entries. Use page J2 for the journal.
(f)
Journalize and post the closing entries, and complete the closing process. Use
page J3 for the journal.
(g) Prepare a post-closing trial balance at July 31.
(g) Prepare a post-closing trial balance at July 31.
SOLUTION PREVIEW
Appendix G
Comprehensive Problem
Journalize Transactions
Use
this template to journalize and post the July transactions for Julie's Maid
Cleaning Service, Inc.
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GENERAL JOURNAL
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J1
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DATE
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ACCOUNT TITLE AND EXPLANATION
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REF.
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DEBIT
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CREDIT
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July 1
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Cash
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14,000
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Common
Stock
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14,000
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1
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Equipment
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10,000
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Cash
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3,000
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Accounts Payable
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7,000
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File name: xacc280-app-G-Julies-maid-cleaning-service.xls File
type: application/vnd.ms-excel Price: $15
