(a)

General Journal
Date
July

12

18

20

21

25

31

31

J1

Account Titles and Explanation

Ref.

Debit

Cash .............................
Share CapitalOrdinary ......

101
311

14,000

Equipment ........................
Cash ........................
Accounts Payable ............

157
101
201

10,000

Cleaning Supplies ................

Accounts Payable ............

128
201

800

Prepaid Insurance ................

Cash ........................

130
101

1,800

Accounts Receivable ..............

Service Revenue .............

112
400

3,800

Accounts Payable .................

Cash ........................

201
101

1,400

Salaries Expense .................

Cash ........................

726
101

1,600

Cash .............................
Accounts Receivable .........

101
112

1,400

Accounts Receivable ..............

Service Revenue .............

112
400

1,500

Gas & Oil Expense ................

Cash ........................

633
101

400

Dividends ........................
Cash ........................

332
101

600

Credit
14,000

3,000
7,000

800

1,800

3,800

1,400

1,600

1,400

1,500

400

600

JULIES MAIDS CLEANING SERVICE INC.

Worksheet
For the Month Ended July 31, 2011

(b) & (c)

Account Titles

Trial Balance
Dr.

Cash
Accounts Receivable
Cleaning Supplies
Prepaid Insurance
Equipment
Accounts Payable
Share CapitalOrdinary
Dividends
Service Revenue
Gas & Oil Expense
Salaries Expense
Total
Depreciation Expense
Accum. Depr.Equipment
Insurance Expense
Cleaning Supplies Expense
Salaries Payable
Totals
Net Income
Totals

Cr.

6,600
3,900
800
1,800
10,000

Adjusted
Trial Balance

Adjustments
Dr.

Cr.

(a) 1,300
(d)
(c)

700
150

Dr.

Dr.

Cr.

6,600
5,200
100
1,650
10,000

6,400
14,000

Statement of
Financial Position
Dr.

6,400
14,000

600
5,300

(a) 1,300
(e)

500

(b)

200

Cr.

6,600
5,200
100
1,650
10,000
6,400
14,000

600
400
1,600
25,700

Cr.

Income
Statement

600
6,600

400
2,100

6,600
400
2,100

25,700
200
(b)
(c)
(d)

200

150
700

150
700
(e)

2,850

200
200

500
2,850

27,700

200
150
700

500
27,700

3,550
3,050
6,600

6,600

24,150

6,600

24,150

Key: (a) Service Revenue; (b) Depreciation Expense; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.

500
21,100
3,050
24,150

COMPREHENSIVE PROBLEM (Continued)

(a), (e) & (f)
Cash
Date
July

Explanation
1
1
5
18
20
21
31
31

No. 101

Ref.

Debit

J1
J1
J1
J1
J1
J1
J1
J1

14,000

Credit
3,000
1,800
1,400
1,600

1,400
400
600

Accounts Receivable
Date
July 12
21
25
31

Explanation

Adjusting

Ref.

Debit

J1
J1
J1
J2

3,800

July 3
31

Explanation
Adjusting

Ref.

Credit
1,400

1,500
1,300

Credit

800
700

Prepaid Insurance
Date
July 5
31

Explanation
Adjusting

Balance
3,800
2,400
3,900
5,200

No. 128

Debit

J1
J2

14,000
11,000
9,200
7,800
6,200
7,600
7,200
6,600

No. 112

Cleaning Supplies
Date

Balance

Ref.

Debit

J1
J2

1,800

Balance
800
100

No. 130
Credit
150

Balance
1,800
1,650

Equipment
Date
July

Explanation
1

No. 157

Ref.

Debit

J1

10,000

Credit

Balance
10,000

COMPREHENSIVE PROBLEM (Continued)

Accumulated DepreciationEquipment
Date

Explanation

July 31

Adjusting

Ref.

Debit

J2

No. 158

Credit

Balance

200

200

Accounts Payable
Date

Explanation

July 1
3
18

Ref.
J1
J1
J1

No. 201

Debit

Credit

Balance

7,000
800

7,000
7,800
6,400

1,400

Salaries Payable
Date

Explanation

July 31

Adjusting

Ref.

No. 212

Debit

J2

Credit

Balance

500

500

Share CapitalOrdinary
Date

Explanation

July 1

Ref.

Debit

J1

No. 311
Credit

Balance

14,000

14,000

Retained Earnings
Date

Explanation

July 31
31

Closing
Closing

Ref.
J3
J3

No. 320

Debit

Credit

Balance

3,050

3,050
2,450

600

Dividends
Date
July 31
31

Explanation
Closing

Ref.
J1
J3

No. 332
Debit

Credit

Balance

600

600
0

600

Income Summary
Date

Explanation

July 31
31

Closing
Closing

Ref.
J3
J3

No. 350
Debit
3,550

Credit

Balance

6,600

6,600
3,050

31

Closing

J3

3,050

COMPREHENSIVE PROBLEM (Continued)

Service Revenue
Date
July 12
25
31
31

Explanation

Adjusting
Closing

Ref.
J1
J1
J2
J3

No. 400
Debit

Credit

Balance

3,800
1,500
1,300

3,800
5,300
6,600
0

6,600

Gas & Oil Expense

Date
July 31
31

Explanation
Closing

Ref.

No. 633

Debit

J1
J3

Credit

Balance

400

400
0

400

Cleaning Supplies Expense

Date

Explanation

July 31
31

Adjusting
Closing

Ref.

Debit

J2
J3

No. 634
Credit

Balance

700

700
0

700

Depreciation Expense
Date

Explanation

July 31
31

Adjusting
Closing

Ref.

Debit

J2
J3

No. 711
Credit

Balance

200

200
0

200

Insurance Expense
Date

Explanation

July 31
31

Adjusting
Closing

Ref.

No. 722

Debit

J2
J3

Credit

Balance

150

150
0

150

Salaries Expense
Date
July 20
31

Explanation
Adjusting

Ref.

Debit

J1
J2

1,600
500

No. 726
Credit

Balance
1,600
2,100

31

Closing

J3

2,100

COMPREHENSIVE PROBLEM (Continued)

(d)

JULIES MAIDS CLEANING SERVICE INC.

Income Statement
For the Month Ended July 31, 2011
Revenues
Service revenue .........................
Expenses
Salaries expense ........................
Cleaning supplies expense ...............
Gas & oil expense .......................
Depreciation expense ....................
Insurance expense .......................
Total expenses ......................
Net income ..................................

$6,600
$2,100
700
400
200
150
3,550
$3,050

JULIES MAIDS CLEANING SERVICE INC.

Retained Earnings Statement
For the Month Ended July 31, 2011
Retained earnings, July 1 ..........................
Add:
Net income ..................................
Less: Dividends ...................................
Retained earnings, July 31 .........................

0
3,050
3,050
600
$2,450

COMPREHENSIVE PROBLEM (Continued)

JULIES MAIDS CLEANING SERVICE INC.
Statement of Financial Position
July 31, 2011
Assets
Property, plant, and equipment
Equipment ...............................
Less: Accumulated depreciation .........
Current assets
Prepaid insurance .......................
Cleaning supplies .......................
Accounts receivable .....................
Cash ...........................
6,600
Total assets ................................

$10,000
200

9,800

1,650
100
5,200
13,550
$23,350

Equity and Liabilities

Equity
Share capitalordinary ..................
Retained earnings .......................
Current liabilities
Accounts payable ........................
Salaries payable ........................
Total equity and liabilities ................

$14,000
2,450
6,400
500

$16,450

6,900
$23,350

COMPREHENSIVE PROBLEM (Continued)

(e)

General Journal

Date
July
31

31

31

31

31

J2

Account Titles and Explanation

Ref.

Debit

Accounts Receivable ..............

112

1,300

Service Revenue .............

400

Depreciation Expense .............

Accumulated Depreciation
Equipment ...............

711

Insurance Expense ................

Prepaid Insurance ...........

722
130

150

Cleaning Supplies Expense ........

Cleaning Supplies ...........

634
128

700

Salaries Expense .................

Salaries Payable ............

726
212

500

Credit

1,300
200

158

200

150

700

500

(f)
General Journal
Date
July
31

31

31

31

J3

Account Titles and Explanation

Ref.

Debit

Service Revenue ..................

400

6,600

Income Summary ..............

350

Income Summary ...................

Salaries Expense ............
Depreciation Expense ........
Insurance Expense ...........
Cleaning Supplies Expense ...
Gas & Oil Expense ...........

350
726
711
722
634
633

3,550

Income Summary ...................

Retained Earnings ...........

350
320

3,050

Retained Earnings ................

320

600

Credit

6,600

2,100
200
150
700
400

3,050

Dividends ...................

332

600

COMPREHENSIVE PROBLEM (Continued)

(g)

JULIES MAIDS CLEANING SERVICE INC.

Post-Closing Trial Balance
July 31, 2011

Cash .....................................
Accounts Receivable ......................
Cleaning Supplies ........................
Prepaid Insurance ........................
Equipment ................................
Accumulated DepreciationEquipment .......
Accounts Payable .........................
Salaries Payable .........................
Share CapitalOrdinary ...................
Retained Earnings ........................

Debit
$ 6,600
5,200
100
1,650
10,000

Credit

$23,550

200
6,400
500
14,000
2,450
$23,550