XACC 280 Week 6 Julie Molony opened Julie’s Maids Cleaning Service
Inc. on July 1, 2008. During July, the company
XACC 280 Week 6
• Complete the Comprehensive Problem on pp. 189–190 of Financial Accounting.
• Use the templates in Appendix G to complete the problem; complete all six tabs.
• Post the completed Appendix G as an attachment.
• Due Date: Day 6 [post to your Individual forum]
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.
(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.
Solution
in Excel.
Illustration 4-5(xacc280_week3_reading2)
After examining Illustration 4-5 on p. 151 of Financial Accounting, what do you consider might happen if revenue accounts are not closed? Explain why.
TUTORIAL
PREVIEW
As a part of the Accounting cycle steps, Revenue accounts and Expense accounts are closed to Income Summary Account. The purpose of closing entries is (1) to transfer the results of operations for the period to Retained Earnings and (2) to begin the new accounting period with
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XACC 280 Week 6
Axia College of University of Phoenix (UoP)
3. Assignment:
Comprehensive Problem• Complete the Comprehensive Problem on pp. 189–190 of Financial Accounting.
• Use the templates in Appendix G to complete the problem; complete all six tabs.
• Post the completed Appendix G as an attachment.
• Due Date: Day 6 [post to your Individual forum]
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.
Illustration 4-5(xacc280_week3_reading2)
After examining Illustration 4-5 on p. 151 of Financial Accounting, what do you consider might happen if revenue accounts are not closed? Explain why.
expense
accounts are not closed? Explain why.
dividends
are not closed? Explain why.As a part of the Accounting cycle steps, Revenue accounts and Expense accounts are closed to Income Summary Account. The purpose of closing entries is (1) to transfer the results of operations for the period to Retained Earnings and (2) to begin the new accounting period with
And
Julie Molony opened Julie’s Maids
Cleaning Service Inc |
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JULIE’S MAIDS CLEANING SERVICE INC.
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Post-Closing Trial Balance
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July 31, 2008
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ACCOUNTS
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DEBIT
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CREDIT
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Cash
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6,600
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Accounts Receivable
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5,200
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Cleaning Supplies
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100
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