[hiten123]

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)

[jzzz]

If the t account for allowance for doubt account has a credit balance of $12,550. Which account will affect the t account?:confused:

[AdamUTsel]

Jzzz... I'm not sure what you're exact question is.

Typically ADA (your allowance account) is only charged when you estimate bad debts and write off bad debts.

Estimate Allowance
Dr. Bad Debt Expense
Cr. Allowance

Write-off bad debt (AR)
Dr. Allowance
Cr. AR