Mary Coleman opened Mary’s Maids Cleaning Service Inc. on July 1, 2006. During July, the following transactions were completed.
Week Tree Assignment
3 Purchased cleaning supplies for $800 on account.
5Paid $2,400 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 $2,500 for cleaning services.
31 Paid gas and oil for the month on the truck, $400.
31 Declared and paid a $600 cash dividend.
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,
No. 726 Salaries Expense.
(b) Prepare a trial balance at July 31 on a work sheet.
(b) Trial balance totals $26,700
(c) Enter the following adjustments on the work sheet, and complete the work sheet.
(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 $300 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $500.
Week Tree Assignment
Mary Coleman opened Mary’s Maids
Cleaning Service Inc. on July 1, 2006. During July, the following transactions
were completed.
1-Jul 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.
5Paid $2,400 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 $2,500 for cleaning services.
31 Paid gas and oil for the month on the truck, $400.
31 Declared and paid a $600 cash dividend.
The chart of accounts for Mary’s
Maids Cleaning Service Inc. 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,
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 work sheet.
(b) Trial balance totals $26,700
(c) Enter the following adjustments on the work sheet, and complete the work sheet.
(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 $300 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $500.
(d) Journalize
and post the adjusting entries. Use page J2 for
File name: Mary-Coleman-opened-Marys.xls File type: application/vnd.ms-excel Price: $12
