hiten123
Sep 7, 2008, 03:28 PM
Katie Gage opened New View Window Washing Inc. on July 1, 2007. During July the following transactions were completed.
July 1 Issued 11,000 shares of common stock for $11,000 cash.
July 1 Purchased used truck for $9,000, paying $3,000 cash and the balance on account.
July 3 Purchased cleaning supplies for $800 on account.
July 5 Paid $1,440 cash on 1-year insurance policy effective July 1.
July 12 Billed customers $3,200 for cleaning services.
July 18 Paid $1,000 cash on amount owed on truck and $500 on amount owed on cleaning supplies.
July 20 Paid $2,000 cash for employee salaries.
July 21 Collected $1,400 cash from customers billed on July 12.
July 25 Billed customers $2,000 for cleaning services.
July 31 Paid $260 for gas and oil used in the truck during month.
July 31 Declared and paid a $600 cash dividend.
Journalize the July transactions. (For multiple debit/credit entries, list accounts in order of magnitude.)
Date Account / Description Debit Credit
July 1 Cleaning Supplies ExpenseCommon StockDividendsDepreciation ExpenseInsurance ExpenseRetained EarningsAccumulated DepreciationAccounts ReceivableEquipmentCashCleaning SuppliesAccounts PayableSalaries PayableGas & Oil ExpensePrepaid InsuranceService RevenueSalaries Expense $
Accounts PayablePrepaid InsuranceRetained EarningsDepreciation ExpenseAccounts ReceivableInsurance ExpenseService RevenueSalaries ExpenseGas & Oil ExpenseDividendsCommon StockCleaning SuppliesAccumulated DepreciationCleaning Supplies ExpenseSalaries PayableCashEquipment $
(To record the issuance of stock)
July 1 DividendsRetained EarningsPrepaid InsuranceSalaries ExpenseCommon StockDepreciation ExpenseService RevenueGas & Oil ExpenseInsurance ExpenseEquipmentAccounts PayableSalaries PayableAccounts ReceivableCleaning Supplies ExpenseAccumulated DepreciationCleaning SuppliesCash $
Accounts ReceivablePrepaid InsuranceAccounts PayableSalaries ExpenseDividendsGas & Oil ExpenseDepreciation ExpenseSalaries PayableCommon StockCashCleaning SuppliesEquipmentService RevenueInsurance ExpenseCleaning Supplies ExpenseAccumulated DepreciationRetained Earnings $
Gas & Oil ExpenseCleaning Supplies ExpenseAccumulated DepreciationRetained EarningsPrepaid InsuranceAccounts ReceivableSalaries PayableCashCleaning SuppliesDividendsAccounts PayableInsurance ExpenseCommon StockService RevenueSalaries ExpenseDepreciation ExpenseEquipment $
(To record the purchase of a truck)
July 3 Gas & Oil ExpenseCommon StockEquipmentAccounts PayableService RevenueCashCleaning SuppliesSalaries ExpenseDepreciation ExpenseCleaning Supplies ExpenseInsurance ExpenseRetained EarningsDividendsPrepaid InsuranceAccounts ReceivableSalaries PayableAccumulated Depreciation $
Prepaid InsuranceCleaning SuppliesCashSalaries ExpenseSalaries PayableCommon StockGas & Oil ExpenseAccumulated DepreciationDividendsEquipmentDepreciation ExpenseInsurance ExpenseAccounts ReceivableCleaning Supplies ExpenseRetained EarningsAccounts PayableService Revenue $
July 5 Accounts PayableAccumulated DepreciationSalaries PayableSalaries ExpenseService RevenueCommon StockEquipmentCleaning Supplies ExpenseDividendsRetained EarningsAccounts ReceivableGas & Oil ExpensePrepaid InsuranceDepreciation ExpenseInsurance ExpenseCleaning SuppliesCash $
Service RevenueAccounts ReceivableRetained EarningsSalaries PayablePrepaid InsuranceSalaries ExpenseGas & Oil ExpenseDividendsCashCleaning Supplies ExpenseAccumulated DepreciationDepreciation ExpenseInsurance ExpenseCleaning SuppliesCommon StockEquipmentAccounts Payable $
July 12 Depreciation ExpenseRetained EarningsCashCommon StockSalaries PayableDividendsAccounts ReceivableCleaning SuppliesEquipmentAccounts PayableAccumulated DepreciationInsurance ExpenseSalaries ExpensePrepaid InsuranceCleaning Supplies ExpenseGas & Oil ExpenseService Revenue $
Depreciation ExpenseCleaning SuppliesEquipmentCashAccounts PayableCommon StockPrepaid InsuranceSalaries ExpenseAccumulated DepreciationInsurance ExpenseGas & Oil ExpenseAccounts ReceivableRetained EarningsCleaning Supplies ExpenseSalaries PayableDividendsService Revenue $
July 18 DividendsCashCommon StockRetained EarningsSalaries PayableAccounts PayableAccounts ReceivableCleaning SuppliesService RevenueSalaries ExpenseEquipmentAccumulated DepreciationPrepaid InsuranceGas & Oil ExpenseCleaning Supplies ExpenseDepreciation ExpenseInsurance Expense $
DividendsInsurance ExpenseAccounts ReceivableCleaning SuppliesSalaries PayableRetained EarningsCleaning Supplies ExpenseAccounts PayableCommon StockSalaries ExpensePrepaid InsuranceAccumulated DepreciationGas & Oil ExpenseEquipmentService RevenueCashDepreciation Expense $
July 20 Insurance ExpenseAccumulated DepreciationCleaning Supplies ExpenseDepreciation ExpenseEquipmentAccounts ReceivableSalaries PayableAccounts PayablePrepaid InsuranceCashRetained EarningsCommon StockDividendsSalaries ExpenseCleaning SuppliesGas & Oil ExpenseService Revenue $
Service RevenueCleaning Supplies ExpenseDepreciation ExpenseCashAccumulated DepreciationSalaries PayableGas & Oil ExpenseDividendsInsurance ExpenseSalaries ExpenseEquipmentAccounts ReceivableAccounts PayableRetained EarningsCleaning SuppliesCommon StockPrepaid Insurance $
July 21 Cleaning Supplies ExpenseAccumulated DepreciationRetained EarningsService RevenueCleaning SuppliesCommon StockSalaries ExpensePrepaid InsuranceGas & Oil ExpenseSalaries PayableDividendsDepreciation ExpenseInsurance ExpenseAccounts PayableCashEquipmentAccounts Receivable $
Accounts ReceivableSalaries PayableInsurance ExpenseCleaning SuppliesSalaries ExpenseEquipmentDividendsRetained EarningsDepreciation ExpenseGas & Oil ExpenseCashPrepaid InsuranceCleaning Supplies ExpenseAccounts PayableCommon StockService RevenueAccumulated Depreciation $
July 25 Retained EarningsCashPrepaid InsuranceEquipmentCleaning Supplies ExpenseAccumulated DepreciationCleaning SuppliesAccounts PayableSalaries PayableDividendsCommon StockGas & Oil ExpenseDepreciation ExpenseInsurance ExpenseAccounts ReceivableService RevenueSalaries Expense $
Depreciation ExpenseEquipmentAccounts PayablePrepaid InsuranceCleaning SuppliesAccumulated DepreciationService RevenueGas & Oil ExpenseSalaries ExpenseInsurance ExpenseAccounts ReceivableRetained EarningsCashDividendsCommon StockSalaries PayableCleaning Supplies Expense $
July 31 Salaries ExpenseCashCommon StockGas & Oil ExpenseAccumulated DepreciationSalaries PayableEquipmentAccounts PayableCleaning Supplies ExpenseDividendsService RevenuePrepaid InsuranceAccounts ReceivableRetained EarningsDepreciation ExpenseInsurance ExpenseCleaning Supplies $
Common StockEquipmentAccounts PayablePrepaid InsuranceAccounts ReceivableService RevenueSalaries ExpenseAccumulated DepreciationGas & Oil ExpenseSalaries PayableDividendsRetained EarningsInsurance ExpenseCleaning SuppliesCashCleaning Supplies ExpenseDepreciation Expense $
(Paid for gas and oil)
July 31 Retained EarningsCashGas & Oil ExpenseService RevenueDividendsAccounts ReceivableAccounts PayableCleaning Supplies ExpenseSalaries ExpenseDepreciation ExpenseAccumulated DepreciationPrepaid InsuranceSalaries PayableInsurance ExpenseCleaning SuppliesCommon StockEquipment $
Prepaid InsuranceDividendsCashCleaning Supplies ExpenseAccounts PayableCleaning SuppliesCommon StockInsurance ExpenseAccounts ReceivableAccumulated DepreciationEquipmentService RevenueSalaries ExpenseSalaries PayableDepreciation ExpenseGas & Oil ExpenseRetained Earnings $
(Declared and paid a dividend)
July 1 Issued 11,000 shares of common stock for $11,000 cash.
July 1 Purchased used truck for $9,000, paying $3,000 cash and the balance on account.
July 3 Purchased cleaning supplies for $800 on account.
July 5 Paid $1,440 cash on 1-year insurance policy effective July 1.
July 12 Billed customers $3,200 for cleaning services.
July 18 Paid $1,000 cash on amount owed on truck and $500 on amount owed on cleaning supplies.
July 20 Paid $2,000 cash for employee salaries.
July 21 Collected $1,400 cash from customers billed on July 12.
July 25 Billed customers $2,000 for cleaning services.
July 31 Paid $260 for gas and oil used in the truck during month.
July 31 Declared and paid a $600 cash dividend.
Journalize the July transactions. (For multiple debit/credit entries, list accounts in order of magnitude.)
Date Account / Description Debit Credit
July 1 Cleaning Supplies ExpenseCommon StockDividendsDepreciation ExpenseInsurance ExpenseRetained EarningsAccumulated DepreciationAccounts ReceivableEquipmentCashCleaning SuppliesAccounts PayableSalaries PayableGas & Oil ExpensePrepaid InsuranceService RevenueSalaries Expense $
Accounts PayablePrepaid InsuranceRetained EarningsDepreciation ExpenseAccounts ReceivableInsurance ExpenseService RevenueSalaries ExpenseGas & Oil ExpenseDividendsCommon StockCleaning SuppliesAccumulated DepreciationCleaning Supplies ExpenseSalaries PayableCashEquipment $
(To record the issuance of stock)
July 1 DividendsRetained EarningsPrepaid InsuranceSalaries ExpenseCommon StockDepreciation ExpenseService RevenueGas & Oil ExpenseInsurance ExpenseEquipmentAccounts PayableSalaries PayableAccounts ReceivableCleaning Supplies ExpenseAccumulated DepreciationCleaning SuppliesCash $
Accounts ReceivablePrepaid InsuranceAccounts PayableSalaries ExpenseDividendsGas & Oil ExpenseDepreciation ExpenseSalaries PayableCommon StockCashCleaning SuppliesEquipmentService RevenueInsurance ExpenseCleaning Supplies ExpenseAccumulated DepreciationRetained Earnings $
Gas & Oil ExpenseCleaning Supplies ExpenseAccumulated DepreciationRetained EarningsPrepaid InsuranceAccounts ReceivableSalaries PayableCashCleaning SuppliesDividendsAccounts PayableInsurance ExpenseCommon StockService RevenueSalaries ExpenseDepreciation ExpenseEquipment $
(To record the purchase of a truck)
July 3 Gas & Oil ExpenseCommon StockEquipmentAccounts PayableService RevenueCashCleaning SuppliesSalaries ExpenseDepreciation ExpenseCleaning Supplies ExpenseInsurance ExpenseRetained EarningsDividendsPrepaid InsuranceAccounts ReceivableSalaries PayableAccumulated Depreciation $
Prepaid InsuranceCleaning SuppliesCashSalaries ExpenseSalaries PayableCommon StockGas & Oil ExpenseAccumulated DepreciationDividendsEquipmentDepreciation ExpenseInsurance ExpenseAccounts ReceivableCleaning Supplies ExpenseRetained EarningsAccounts PayableService Revenue $
July 5 Accounts PayableAccumulated DepreciationSalaries PayableSalaries ExpenseService RevenueCommon StockEquipmentCleaning Supplies ExpenseDividendsRetained EarningsAccounts ReceivableGas & Oil ExpensePrepaid InsuranceDepreciation ExpenseInsurance ExpenseCleaning SuppliesCash $
Service RevenueAccounts ReceivableRetained EarningsSalaries PayablePrepaid InsuranceSalaries ExpenseGas & Oil ExpenseDividendsCashCleaning Supplies ExpenseAccumulated DepreciationDepreciation ExpenseInsurance ExpenseCleaning SuppliesCommon StockEquipmentAccounts Payable $
July 12 Depreciation ExpenseRetained EarningsCashCommon StockSalaries PayableDividendsAccounts ReceivableCleaning SuppliesEquipmentAccounts PayableAccumulated DepreciationInsurance ExpenseSalaries ExpensePrepaid InsuranceCleaning Supplies ExpenseGas & Oil ExpenseService Revenue $
Depreciation ExpenseCleaning SuppliesEquipmentCashAccounts PayableCommon StockPrepaid InsuranceSalaries ExpenseAccumulated DepreciationInsurance ExpenseGas & Oil ExpenseAccounts ReceivableRetained EarningsCleaning Supplies ExpenseSalaries PayableDividendsService Revenue $
July 18 DividendsCashCommon StockRetained EarningsSalaries PayableAccounts PayableAccounts ReceivableCleaning SuppliesService RevenueSalaries ExpenseEquipmentAccumulated DepreciationPrepaid InsuranceGas & Oil ExpenseCleaning Supplies ExpenseDepreciation ExpenseInsurance Expense $
DividendsInsurance ExpenseAccounts ReceivableCleaning SuppliesSalaries PayableRetained EarningsCleaning Supplies ExpenseAccounts PayableCommon StockSalaries ExpensePrepaid InsuranceAccumulated DepreciationGas & Oil ExpenseEquipmentService RevenueCashDepreciation Expense $
July 20 Insurance ExpenseAccumulated DepreciationCleaning Supplies ExpenseDepreciation ExpenseEquipmentAccounts ReceivableSalaries PayableAccounts PayablePrepaid InsuranceCashRetained EarningsCommon StockDividendsSalaries ExpenseCleaning SuppliesGas & Oil ExpenseService Revenue $
Service RevenueCleaning Supplies ExpenseDepreciation ExpenseCashAccumulated DepreciationSalaries PayableGas & Oil ExpenseDividendsInsurance ExpenseSalaries ExpenseEquipmentAccounts ReceivableAccounts PayableRetained EarningsCleaning SuppliesCommon StockPrepaid Insurance $
July 21 Cleaning Supplies ExpenseAccumulated DepreciationRetained EarningsService RevenueCleaning SuppliesCommon StockSalaries ExpensePrepaid InsuranceGas & Oil ExpenseSalaries PayableDividendsDepreciation ExpenseInsurance ExpenseAccounts PayableCashEquipmentAccounts Receivable $
Accounts ReceivableSalaries PayableInsurance ExpenseCleaning SuppliesSalaries ExpenseEquipmentDividendsRetained EarningsDepreciation ExpenseGas & Oil ExpenseCashPrepaid InsuranceCleaning Supplies ExpenseAccounts PayableCommon StockService RevenueAccumulated Depreciation $
July 25 Retained EarningsCashPrepaid InsuranceEquipmentCleaning Supplies ExpenseAccumulated DepreciationCleaning SuppliesAccounts PayableSalaries PayableDividendsCommon StockGas & Oil ExpenseDepreciation ExpenseInsurance ExpenseAccounts ReceivableService RevenueSalaries Expense $
Depreciation ExpenseEquipmentAccounts PayablePrepaid InsuranceCleaning SuppliesAccumulated DepreciationService RevenueGas & Oil ExpenseSalaries ExpenseInsurance ExpenseAccounts ReceivableRetained EarningsCashDividendsCommon StockSalaries PayableCleaning Supplies Expense $
July 31 Salaries ExpenseCashCommon StockGas & Oil ExpenseAccumulated DepreciationSalaries PayableEquipmentAccounts PayableCleaning Supplies ExpenseDividendsService RevenuePrepaid InsuranceAccounts ReceivableRetained EarningsDepreciation ExpenseInsurance ExpenseCleaning Supplies $
Common StockEquipmentAccounts PayablePrepaid InsuranceAccounts ReceivableService RevenueSalaries ExpenseAccumulated DepreciationGas & Oil ExpenseSalaries PayableDividendsRetained EarningsInsurance ExpenseCleaning SuppliesCashCleaning Supplies ExpenseDepreciation Expense $
(Paid for gas and oil)
July 31 Retained EarningsCashGas & Oil ExpenseService RevenueDividendsAccounts ReceivableAccounts PayableCleaning Supplies ExpenseSalaries ExpenseDepreciation ExpenseAccumulated DepreciationPrepaid InsuranceSalaries PayableInsurance ExpenseCleaning SuppliesCommon StockEquipment $
Prepaid InsuranceDividendsCashCleaning Supplies ExpenseAccounts PayableCleaning SuppliesCommon StockInsurance ExpenseAccounts ReceivableAccumulated DepreciationEquipmentService RevenueSalaries ExpenseSalaries PayableDepreciation ExpenseGas & Oil ExpenseRetained Earnings $
(Declared and paid a dividend)