Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. During July, th
ID: 2421628 • Letter: M
Question
Mike Greenberg opened Clean Window Washing Inc. on July 1, 2014. During July, the following transactions were completed.
July 1 Issued 13,270 shares of common stock for $13,270 cash.
1 Purchased used truck for $9,270, paying $2,167 cash and the balance on account.
3 Purchased cleaning supplies for $948 on account.
5 Paid $1,800 cash on a 1-year insurance policy effective July 1.
12 Billed customers $4,850 for cleaning services.
18 Paid $1,023 cash on amount owed on truck and $509 on amount owed on cleaning supplies.
20 Paid $2,152 cash for employee salaries.
21 Collected $1,646 cash from customers billed on July 12.
25 Billed customers $2,593 for cleaning services.
31 Paid $364 for maintenance of the truck during month.
31 Declared and paid $645 cash dividend.
Post adjusting entries to the T-accounts.
Explanation / Answer
T-Accounts
Cash
Prepaid insurance
Account receivable
Salaries
A/c payable
Truck
common stokc
Cleaning supplies
Cleaning servixes
Repairs & Maintenance
Dividend
Debit Credit 1 13,270 1) 2,167 5) 5 1,800 18) 18 1,023 20 1646 18 2152 21 21 364 31 645 Bal $6256