Clean-Sweep Janitorial, Inc., a company providing janitorial services, was organized 2010 July 1. The following account numbers and titles constitute the chart of accounts for the company:
|
No. |
Acct. |
Account Title |
|
100 |
Cash |
|
|
103 |
Accounts receivable |
|
|
150 |
Trucks |
|
|
160 |
Office equipment |
|
|
170 |
Equipment |
|
|
200 |
Accounts payable |
|
|
201 |
Notes payable |
|
|
300 |
Capital stock |
|
|
310 |
Retained earnings |
|
|
320 |
Dividends |
|
|
400 |
Service revenue |
|
|
506 |
Gas and oil expense |
|
|
507 |
Salaries expense |
|
|
511 |
Utilities expense |
|
|
512 |
Insurance expense |
|
|
515 |
Rent expense |
|
|
518 |
Supplies expense |
July 1 The company issued USD 600,000 of capital stock for cash.
5 Office space was rented for July, and USD 5,000 was paid for the rental.
8 Desks and chairs were purchased for the office on account, USD 28,800.
10 Equipment was purchased for USD 50,000; a note was given, to be paid in 30 days.
15 Purchased trucks for USD 150,000, paying USD 120,000 cash and giving a 60-day note to the dealer for USD 30,000.
July 18 Paid for supplies received and already used, USD 2,880.
23 Received USD 17,280 cash as service revenue.
27 Insurance expense for July was paid, USD 4,500.
30 Paid for gasoline and oil used by the truck in July, USD 576.
31 Billed customers for janitorial services rendered, USD 40,320.
31 Paid salaries for July, USD 51,840.
31 Paid utilities bills for July, USD 5,280.
31 Paid cash dividends, USD 9,600.
a. Prepare general ledger accounts for all of these accounts except Retained Earnings. The Retained Earnings account has a beginning balance of zero and maintains this balance throughout the period.
b. Journalize the transactions given for July 2010 in the general journal.
c. Post the journal entries to ledger accounts.
d. Prepare a trial balance as of 2010 July 31.