Question

Problem 4-05A a-g (Video) Cullumber Clark opened Cullumber's Cleaning Service on July 1, 2020. During July, the following transactions were comp July 1 Cullumber invested $20,000 cash in the business. Purchased used truck for 58,900, paying $4,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,900 on account. 5 Paid $1,800 cash on 1-year insurance policy effective July 1. 12 Billed customers $4,500 for cleaning services. 18 Paid $1,600 cash on amount owed on truck and $1,300 on amount owed on cleaning supplies. 20 Paid $2,400 cash for employee salaries. 21 Collected $3,300 cash from customers billed on July 12. 25 Billed customers $6,000 for cleaning services. 31 Paid $340 for the monthly gasoline bill for the truck. 31 Withdraw $5,500 cash for personal use.

please do the balance sheet as well

Answer 1

Cullumber's Cleaning Service Journal entries Date Account 1-Jul Cash Owner's Capital Credit Calculation Debit $ 20,000 $ 20,000 $ 8,900 1-Jul Equipment Cash Accounts Payable $ $ 4,000 4,900 $ 1,900 3-Jul Supplies Accounts Payable $ 1,900 $ 1,800 5-Jul Prepaid Insurance Cash $ 1,800 $ 4,500 12-Jul Accounts Receivable Service revenue $ 4,500 $ 2,900 =1,600+1,300 18-Jul Accounts Payable Cash $ 2,900 20-Jul Salaries & Wages expense $ 2,400 Cash $ 2,400 $ 3,300 21-Jul Cash Accounts Receivable $ 3,300 $ 6,000 25-Jul Accounts Receivable Service revenue $ 6,000 $ 340 31-Jul Gasoline expense Cash $ 340 $ 5,500 31-Jul Owner's Drawings Cash $ 5,500

Credit Calculation Adjusting entries Date Account 31-Jul Accounts Receivable Service revenue Debit $ 2,600 $ 2,600 $ 400 31-Jul Depreciation expense Accumulated Depreciation-Equipment $ 400 $ 150 =1,800/12 31-Jul Insurance expense Prepaid Insurance $ 150 $ 1,400 =1,900-500 31-Jul Supplies expense Supplies $ 1,400 $ 1,010 31-Jul Salaries & Wages expense Salaries & Wages Payable $ 1,010

Credit Calculation Closing entries Date Account 31-Jul Service revenue Income Summary Debit $ 13,100 $ 13,100 $ 5,700 31-Jul Income Summary Gasoline expense Depreciation expense Insurance expense Supplies expense Salaries & Wages expense $ $ $ $ $ 340 400 150 1,400 3,410 $ 7,400 =13,100-5,700 31-Jul Income Summary Owner's Capital $ 7,400 $ 5,500 31-Jul Owner's Capital Owner's Drawings $ 5,500

Credit Credit Date Credit Date Credit Debit Date Supplies 1,900 31-Jul Date Debit Date Accounts Receivable 12-Jul 4,500 21-Jul 25-Jul 6,000 31-Jul 2,600 Debit Date Prepaid Insurance 1,800 31-Jul 3,300 3-Jul 1,400 5-Jul Cullumber's Cleaning Service T Accounts Date Debit Date Cash 1-Jul 20,000 1-Jul 21-Jul 3,300 5-Jul 18-Jul 20-Jul 31-Jul 31-Jul 150 4,000 1,800 2,900 2,400 340 5,500 Bal. Bal. Bal. 6,360 Equipment 8,900 Bal. 9,800 Accumulated Depreciation-Equipment 31-Jul 400 500 Accounts Payable 2,900 1-Jul 1,650 Salaries & Wages Payable 31-Jul 1-Jul 18-Jul 1,010 4,900 1,900 Bal. Bal. 400 3,900 1,010 8,900 Owner's Capital 1-Jul 5,500 31-Jul Bal. Owner's Drawings 5,500 31-Jul Bal. Income Summary 5,700 31-Jul 7,400 31-Jul 5,500 13,100 20,000 7,400 31-Jul 31-Jul 31-Jul 21,900 Bal. Bal. Bal. Service revenue 12-Jul 25-Jul 13,100 31-Jul Gasoline expense 340 Supplies expense 1,400 Bal. Depreciation expense 31-Jul 400 31-Jul 31-Jul 4,500 6,000 2,600 31-Jul 31-Jul 340 31-Jul 1,400 31-Jul 400 Bal. Bal. 31-Jul Insurance expense 150 31-Jul Salaries & Wages expense 20-Jul 2,400 31-Jul 1,010 31-Jul 150 3,410 Bal. Bal.

Adjustments Debit Credit Income Statement Debit Credit Post closing TB Debit Credit 6,360 2,600 9,800 1,400 150 Unadjusted TB Debit Credit 6,360 7,200 1,900 1,800 8,900 3,900 20,000 5,500 10,500 340 2,400 34,400 34,400 Adjusted TB Debit Credit 6,360 9,800 500 1,650 8,900 3,900 20,000 5,500 13,100 340 3,410 Balance Sheet Debit Credit 6,360 9,800 500 1,650 8,900 3,900 20,000 5,500 500 1,650 8,900 3,900 21,900 Cullumber's Cleaning Service Account Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Owner's Capital Owner's Drawings Service revenue Gasoline expense Salaries & Wages expense Totals Depreciation expense Accumulated Depreciation-Equipment Insurance expense Supplies expense Salaries & Wages Payable Totals Net Income Totals 2,600 13,100 340 3,410 1,010 400 400 400 400 400 400 400 150 1,400 150 1,400 150 1,400 1,010 5,560 5,560 1,010 27,210 1,010 38,410 38,410 13,100 32,710 27,210 5,700 7,400 13,100 1,010 25,310 7,400 32,710 13,100 32,710

13,100 Cullumber's Cleaning Service Income Statement For the Month Ended July 31, 2020 Revenues Service revenue Expenses Supplies expense Gasoline expense Depreciation expense Insurance expense Salaries & Wages expense Total Expenses Net Income 1,400 340 400 150 3,410 5,700 7,400 Statement of Owners Equity For the Month Ended July 31, 2020 Owners Capital, July 1 Add Investments Net Income 20,000 7,400 27,400 27,400 (5,500) 21,900 Less: Drawings Owners Capital, July 31

Cullumber's Cleaning Service Balance Sheet As of July 31, 2020 Assets Current Assets: Cash Accounts Receivable Supplies Prepaid Insurance Total Current Assets 3,900 Liabilities & Owners Equity Current Liabilities: 6,360 Accounts Payable 9,800 Salaries & Wages Payable 500 1,650 18,310 Total Current Liabiltiies 1,010 4,910 21,900 Property, Plant & Equipment Equipment Accumulated Depreciation Equipment Equipment, net Owners Equity: 8,900 Owners Capital (400) 8,500 Total Assets 26,810 Total Liabilities & Owners Equity 26,810