4.1 Jan Jansen opened Jan's Window Wasing on July 1, 2002. During July the following transactions
were completed. July 1 Invested $8,000 cash in business. 1 Purchased used truck for $6,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $900 on account. 5 Paid $1,200 cash on one‐year insurance plicy effective March 1. 12 Billed customers $2,500 for cleaning servies. 18 Paid $1,000 cash on amount owed on truck and $500 on amount owed on cleaning supplies. 20 Paid $1,200 cash for employee salaries. 21 Collected $1,400 cash from customers billed on July 12. 25 Billed customers $3,000 for cleaning services. 31 Paid gas and oil for month on truck $200. 31 Withdrew $600 cash for personal use. The chart of accounts for Jan's Window Washing 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. 301 Jan Jansen, Capital, No. 306 Jan Jansen, Drawing, No. 350 Income Summary, No. 400 Fees Earned, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No.722 Insurance Expense, No. 726 Salaries Expense.
Instructions:
a. b. c. Journalize and post the July transactions. Use J1 for the Journal and the three column form of account. Prepare a trial balance at July 31 on a work sheet. Enter the following adjustments on the work sheet and complete the work sheet. 1 Earned but unbilled fees at July 31 was $1,100. 2 Depreciatoin on equipment for the month was $200. 3 One‐twelfth of the insurance expired. 4 An inventory count shows $600 of cleaning supplies on hand at July 31. 5 Accured but unpaid employee salaries were $500. d. e. f. g. Prepare the Income Statement and Owner's Equity Statement for July and a Classisfied Balance Sheet at July 31. Journalize and post adjusting entries. Use page J2 for the Journal. Journalize and post closing entries and completed closing process. Use page J3 for the Journal. Prepare a Post‐Closing Trial Balance at July 31.
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.1
a
General Journal
Date
July 1
J1 Ref.
101 301 157 101 201 128 201
Account Title and Explantion
Cash Jan Jansen, Capital
(Invested cash in the business)
Debit
8,000
Credit
8,000 6,000 3,000 3,000 900 900
1
Equipment Cash Accounts Payable
(Purchased use truck paid half of amount)
3
Cleaning Supplies Accounts Payable
(Purchased cleaning supplies on account)
5
Prepaid Insurance Cash
(Paid cash for one‐year insurance policy)
Accounts Receivable Fees Earned
(Billed customer for cleaing services)
18
Accounts Payable Cash
(Paid cash amount owed on truck and supplies)
20
Salaries Expense Cash
(Paid salries for employee)
21
Cash Accounts Receivable
(Collected cash from customer bill on July 12)
25
Accounts Receivable Fees Earned
(Billed customeer for cleaning services)
31
Gas & Oil Expense Cash
(Paid cash for gas and oil bill)
31
Jan Jansen, Drawing Cash
(Owner withdrew for personal use)
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.1 a
Page 1 of 2
General Ledger
Cash
Date
July, 1 1 5 18 20 21 31 31
Explanation
Invested Cash in business Purchased truck paid half of amount Paid cash for one‐year insurance policy Paid account owed on truck and supplies Paid cash for employee salaries Collected cash from customer billed Paid cash for gas and oil on truck Owner's withdrew for personal use
Explanation
Billed customer for cleaning services Collected cash from customer bill Billed customer for cleaning services
Ref.
J1 J1 J1
Debit 2,500 3,000
Credit 1,400
Cleaning Supplies
Date
July, 3
Explanation
Purchased cleaning supplies on credit
Ref.
J1
Debit 900
Credit
Prepaid Insurance
Date
July, 5
Explanation
Paid cash for one‐year insurance policy
Ref.
J1
Debit 1,200
Credit
No. 130 Balance 1,200
Equipment
Date
July, 1
Explanation
Purchase use truck
Ref.
J1
Debit 6,000
Credit
No. 157 Balance 6,000
Accumulated Depreciation‐Equipment
Date Explanation Ref. Debit Credit
No. 158 Balance
Accounts Payable
Date
July, 1 3 28
Explanation
Purchased use truck paid half of amount Purchased cleaning supplies on credit Paid amount owed on truck and supplies
Ref.
J1 J1 J1
Debit 1,500
Credit 3,000 900
No. 201 Balance 3,000 3,900 2,400
Salaries Payble
Date Explanation Ref. Debit Credit
No. 212 Balance
4.1 a
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
Page 2 of 2
Jan Jansen, Capital
Date
July, 1
Explanation
Invested cash in the business
Ref.
J1
Debit
Credit 8,000
No. 301 Balance 8,000
Jan Jansen, Drawing
Date
July, 31
Explanation
Owner withdrew for personal use
Ref.
J1
Debit 600
Credit
No. 306 Balance 600
Income Summary
Date Explanation Ref. Debit Credit
No. 350 Balance
Fees Earned
Date
July, 12 25
Explanation
Billed customer for cleaing services Billed customer for cleaing services
Ref.
J1 J1
Debit
Credit 2,500 3,000
No. 400 Balance 2,500 5,500
Gas and Oil Expense
Date
July, 31
Explanation
Paid cash for gas and oil on truck
Ref.
J1
Debit 200
Credit
No. 633 Balance 200
Cleaning Supplies Expense
Date Explanation Ref. Debit Credit
No. 634 Balance
Depreciation Expense
Date Explanation Ref. Debit Credit
No. 711 Balance
Insurance Expense
Date Explanation Ref. Debit Credit
No. 722 Balance
Salaries Expense
Date
July, 20
Explanation
Paid cash for employee salries
Ref.
J1
Debit 1,200
Credit
No. 726 Balance 1,200
4.1 a
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
Jan's Window Washing Work Sheet For the month ended July, 31
Account Title
Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Equipment Accounts Payable H. Kohl, Capital H. Kohl, Drawing Fees Earned Gas and Oil Expense Salaries Expense Total Accumulated depre. Equip. Depreciation Expense Insurance Expense Cleaning Supplies Expense Salaries Payable Total Net Income Total
Jan's Window Washing Statement of Owner's Equity For the month ended July, 31
Jan Jansen, Capital July 1 Add: Investments Net Revenue Less: Drawings Jan Jansen, Capital July 31
$ ‐ $ 8,000 $ 4,200 $ 12,200 $ 600 $ 11,600
4.1 d
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
Page 2 of 2
Jan's Window Washing Balance Sheet For the month ended July, 31
Assets
Current Assets Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Total Current Assets Property, Plant, and Equipment Equipment Less: Accumulated depreciation‐equipment
Total Assets Liabilities and Owner's Equipty
Current Liablities Accounts Payable Salaries Payable Total Current Liablities
$ 2,400 $ 400 $ 2,800 $ 2,800
Total Liablities
Owner's Equity Jan Jansen, Capital
$ 11,600 $ 14,400
Total Liabilities and Owner's Equity
4.1 d
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.1 e
General Journal
Date
July, 31 1
J2 Ref. Debit Credit
Account Title and Explantion Adjusting Entry
Accounts Receivable Fees Earned
(To record accrued reveneu)
112 400
1,100 1,100
2
Depreciation Expense Accumulated depre. Equipment
(To record monthly depreciation on equipment)
711 158
200 200
3
Insurance Expense Prepaid Insurance
(To record insurance expired)
722 130
100 100
4
Cleaning Supplies Expense Cleaning Supplies
(To record Supplies used)
634 128
300 300
5
Salaries Expense Salaries Payable
(To record accued salaries)
726 212
400 400
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.1
Page 1 of 2
General Ledger
Cash
Date
July, 1 1 5 18 20 21 31 31
Explanation
Invested Cash in business Purchased truck paid half of amount Paid cash for one‐year insurance policy Paid account owed on truck and supplies Paid cash for employee salaries Collected cash from customer billed Paid cash for gas and oil on truck Owner's withdrew for personal use
Cleaning Supplies Expense
Date
July, 31 Adj. Entry
Explanation
Ref.
J2
Debit 300
Credit
No. 634 Balance 300
Depreciation Expense
Date
July, 31 Adj. Entry
Explanation
Ref.
J2
Debit 200
Credit
No. 711 Balance 200
Insurance Expense
Date
July, 31 Adj. Entry
Explanation
Ref.
J2
Debit 100
Credit
No. 722 Balance 100
Salaries Expense
Date
July, 20 31
Explanation
Paid cash for employee salries Adj. Entry
Ref.
J1 J2
Debit 1,200 400
Credit
No. 726 Balance 1,200 1,600
4.1 e
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.1 f
General Journal
Date
July, 31 31
J3 Ref. Debit Credit
Account Title and Explantion Closing Entry (1)
Fees Earned Income Summary
(To closing Revenue account)
400 350
6,600 6,600
(2)
31
Income Summary Gas & Oil Expense Cleaning Supplies Expense Depreciation Expense Insurance Expense Salaries Expense
(To close Expenses account)
350 633 634 711 722 726
2,400 200 300 200 100 1,600
(3)
31
Income Summary Jan Jansen, Capital
(To close net income to capital)
350 301
4,200 4,200
(4)
31
Jan Jansen, Capital Jan Jansen, Drwaing
(To close drawing to capital)
301 306
600 600
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.1 f
Page 1 of 2
General Ledger
Cash
Date
July, 1 1 5 18 20 21 31 31
Explanation
Invested Cash in business Purchased truck paid half of amount Paid cash for one‐year insurance policy Paid account owed on truck and supplies Paid cash for employee salaries Collected cash from customer billed Paid cash for gas and oil on truck Owner's withdrew for personal use
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.2 Helga Hohl opened Helga's Carpet Cleaners on March 1. During, the following transactions were
completed. March 1 Invested $10,000 cash in business. 1 Purchased used truck for $6,000, paying $4,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,200 on account. 5 Paid $1,800 cash on one‐year insurance plicy effective March 1. 14 Billed customers $2,800 for cleaning servies. 18 Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies. 20 Paid $1,500 cash for employee salaries. 21 Collected $1,600 cash from customers billed on March 14. 28 Billed customers $3,200 for cleaning services. 31 Paid gas and oil for month on truck $200. 31 Withdrew $900 cash for personal use. The chart of accounts for Helga's Carpet Cleaners 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. 301 H. Kohl, Capital, No. 306 H. Kohl, Drawing, No. 350 Income Summary, No. 400 Fees Earned, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No.722 Insurance Expense, No. 726 Salaries Expense.
Instructions:
a. b. c. Journalize and post the March transactions. Use J1 for the Journal and the three column form of account. Prepare a trial balance at March 31 on a work sheet. Enter the following adjustments on the work sheet and complete the work sheet. 1 Earned but unbilled fees at March 31 was $600. 2 Depreciatoin on equipment for the month was $250. 3 One‐twelfth of the insurance expired. 4 An inventory count shows $400 of cleaning supplies on hand at March 31. 5 Accured but unpaid employee salaries were $500. d. e. f. g. Prepare the Income Statement and Owner's Equity Statement for March and a Classisfied Balance Sheet at March 31. Journalize and post adjusting entries. Use page J2 for the Journal. Journalize and post closing entries and completed closing process. Use page J3 for the Journal. Prepare a Post‐Closing Trial Balance at March 31.
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.2
a
General Journal
Date
March 1
J1 Ref.
101 301
Account Title and Explantion Cash H. Kohl, Capital
(Invested cash in the business)
Debit
10,000
Credit
10,000
1
Equipment Cash Accounts Payable
(Purchase use truck)
157 101 201
6,000 4,000 2,000
3
Cleaning Supplies Accounts Payable
(Purchased Cleaning Supplies on credit)
128 201
1,200 1,200
5
Prepaid Insurance Cash
(Paid cash for one‐year insurance policy)
130 101
1,800 1,800
14
Accounts Receivable Fees Earned
(Billed customer for cleaing services)
112 400
2,800 2,800
18
Accounts Payable Cash
(Paid amount owed on truck and supplies)
201 101
2,000 2,000
20
Salaries Expense Cash
(Paid cash for employee salaries)
726 101
1,500 1,500
21
Cash Accounts Receivable
(Collected cash from customer billed on March 14)
101 112
1,600 1,600
28
Accounts Receivable Fees Earned
(Billed customer for cleaning services)
112 400
3,200 3,200
31
Gas & Oil Expense Cash
(Paid cash for gas and oil on truck)
633 101
200 200
31
H. Hohl, Drawing Cash
(Owner's withdrew for personal use)
306 101
900 900
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.2
Page 1 of 2
General Ledger
Cash
Date
March, 1 1 5 18 20 21 31 31
Explanation
Invested Cash in business Purchased truck Paid cash for one‐year insurance Paid account owed on truck and supplies Paid cash for employee salaries Collected cash from customer billed Paid cash for gas and oil on truck Owner's withdrew for personal use
Explanation
Billed customer for cleaning services Collected cash from customer bill Billed customer for cleaning services
Ref.
J1 J1 J1
Debit 2,800 3,200
Credit 1,600
Cleaning Supplies
Date
March, 3
Explanation
Purchased cleaning supplies on credit
Ref.
J1
Debit 1,200
Credit
Prepaid Insurance
Date
March, 5
Explanation
Paid cash for one‐year insurance policy
Ref.
J1
Debit 1,800
Credit
No. 130 Balance 1,800
Equipment
Date
March, 1
Explanation
Purchase use truck
Ref.
J1
Debit 6,000
Credit
No. 157 Balance 6,000
Accumulated Depreciation‐Equipment
Date Explanation Ref. Debit Credit
No. 158 Balance
Accounts Payable
Date
March, 1 3 28
Explanation
Purchased use truck Purchased cleaning supplies on credit Paid amount owed on truck and supplies
Ref.
J1 J1 J1
Debit 2,000
Credit 2,000 1,200
No. 201 Balance 2,000 3,200 1,200
Salaries Payble
Date Explanation Ref. Debit Credit
No. 212 Balance
4.2 a
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
Page 2 of 2
H. Kohl, Capital
Date
March, 1
Explanation
Invested cash in the business
Ref.
J1
Debit
Credit 10,000
No. 301 Balance 10,000
H. Kohl, Drawing
Date
March, 31
Explanation
Owner withdrew for personal use
Ref.
J1
Debit 900
Credit
No. 306 Balance 900
Income Summary
Date Explanation Ref. Debit Credit
No. 350 Balance
Fees Earned
Date
March, 14 28
Explanation
Billed customer for cleaing services Billed customer for cleaing services
Ref.
J1 J1
Debit
Credit 2,800 3,200
No. 400 Balance 2,800 6,000
Gas and Oil Expense
Date
March, 31
Explanation
Paid cash for gas and oil on truck
Ref.
J1
Debit 200
Credit
No. 633 Balance 200
Cleaning Supplies Expense
Date Explanation Ref. Debit Credit
No. 634 Balance
Depreciation Expense
Date Explanation Ref. Debit Credit
No. 711 Balance
Insurance Expense
Date Explanation Ref. Debit Credit
No. 722 Balance
Salaries Expense
Date
March, 20
Explanation
Paid cash for employee salries
Ref.
J1
Debit 1,500
Credit
No. 726 Balance 1,500
4.2 a
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
Helga's Carpet Cleaners Work Sheet For the month ended March, 31
Account Title
Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Equipment Accounts Payable H. Kohl, Capital H. Kohl, Drawing Fees Earned Gas and Oil Expense Salaries Expense Total Accumulated depre. Equip. Depreciation Expense Insurance Expense Cleaning Supplies Expense Salaries Payable Total Net Income Total
Trial Balance Dr. 1,200 4,400 1,200 1,800 6,000 Cr.
Helga's Carpet Cleaners Statement of Owner's Equity For the month ended March, 31
H. Kohl, Capital March 1 Add: Investments Net Revenue Less: Drawings H.Kohl, Capital March 31
$ ‐ $ 10,000 $ 3,200 $ 13,200 $ 900 $ 12,300
4.2 d
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
Page 2 of 2
Helga's Carpet Cleaners Balance Sheet For the month ended March, 31
Assets
Current Assets
Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Total Current Assets
$ 1,200 $ 5,000 $ 400 $ 1,650 $ 8,250
Property, Plant, and Equipment
Equipment Less: Accumulated depreciation‐equipment
$ 6,000 $ 250
$ 5,750 $ 14,000
Total Assets Liabilities and Owner's Equipty
Current Liablities
Accounts Payable Salaries Payable
$ 1,200 $ 500 $ 1,700 $ 1,700
Total Current Liablities
Total Liablities
Owner's Equity
H. Kohl, Capital
$ 12,300 $ 14,000
Total Liabilities and Owner's Equity
4.2 d
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.2 e
General Journal
Date
March, 31 1
J2 Ref. Debit Credit
Account Title and Explantion Adjusting Entry
Accounts Receivable Fees Earned
(To record accrued reveneu)
112 400
600 600
2
Depreciation Expense Accumulated depre. Equipment
(To record monthly depreciation on equipment)
711 158
250 250
3
Insurance Expense Prepaid Insurance
(To record insurance expired)
722 130
150 150
4
Cleaning Supplies Expense Cleaning Supplies
(To record Supplies used)
634 128
800 800
5
Salaries Expense Salaries Payable
(To record accued salaries)
726 212
500 500
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.2
Page 1 of 2
General Ledger
Cash
Date
March, 1 1 5 18 20 21 31 31
Explanation
Invested Cash in business Purchased truck Paid cash for one‐year insurance Paid account owed on truck and supplies Paid cash for employee salaries Collected cash from customer billed Paid cash for gas and oil on truck Owner's withdrew for personal use
Cleaning Supplies Expense
Date
March, 31 Adj. Entry
Explanation
Ref.
J2
Debit 800
Credit
No. 634 Balance 800
Depreciation Expense
Date
March, 31 Adj. Entry
Explanation
Ref.
J2
Debit 250
Credit
No. 711 Balance 250
Insurance Expense
Date
March, 31 Adj. Entry
Explanation
Ref.
J2
Debit 150
Credit
No. 722 Balance 150
Salaries Expense
Date
March, 20 31
Explanation
Paid cash for employee salries Adj. Entry
Ref.
J1 J2
Debit 1,500 500
Credit
No. 726 Balance 1,500 2,000
4.2 e
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.2 f
General Journal
Date
March, 31 31
J3 Ref. Debit Credit
Account Title and Explantion Closing Entry (1)
Fees Earned Income Summary
(To closing Revenue account)
400 350
6,600 6,600
(2)
31
Income Summary Gas & Oil Expense Cleaning Supplies Expense Depreciation Expense Insurance Expense Salaries Expense
(To close Expenses account)
350 633 634 711 722 726
3,400 200 800 250 150 2,000
(3)
31
Income Summary H. Kohl, Capital
(To close net income to capital)
350 301
3,200 3,200
(4)
31
H. Kohl, Capital H. Kohl, Drwaing
(To close drawing to capital)
301 306
900 900
Promotion 9, Year I, Semester II, Stage I, Group D'1, Room E‐107 Mr. Proeun That Tel: 089 92 57 82
4.2
Page 1 of 2
General Ledger
Cash
Date
March, 1 1 5 18 20 21 31 31
Explanation
Invested Cash in business Purchased truck Paid cash for one‐year insurance Paid account owed on truck and supplies Paid cash for employee salaries Collected cash from customer billed Paid cash for gas and oil on truck Owner's withdrew for personal use