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Linda Blye opened Cardinal Window Washing Inc. on July 1, 2010. During July

Price: $4.99

P4-8A Linda Blye opened Cardinal Window Washing Inc. on July 1, 2010. During July
the following transactions were completed.

July 1 Issued 11,000 shares of common stock for $11,000 cash.

1 Purchased used truck for $9,000, paying $2,000 cash and the balance on

3 Purchased cleaning supplies for $900 on account.

5 Paid $1,800 cash on 1-year insurance policy effective July 1.

12 Billed customers $3,200 for cleaning services.

18 Paid $1,000 cash on amount owed on truck and $500 on amount owed on
cleaning supplies.

20 Paid $2,000 cash for employee salaries.

21 Collected $1,400 cash from customers billed on July 12.

25 Billed customers $2,500 for cleaning services.

31 Paid $260 for gas and oil used in the truck during month.

31 Declared and paid $600 cash dividend.

The chart of accounts for Cardinal Window Washing contains the following accounts:
Cash, Accounts Receivable, Cleaning Supplies, Prepaid Insurance, Equipment, Accumulated
Depreciation—Equipment, Accounts Payable, Salaries Payable, Common Stock,
Retained Earnings, Dividends, Income Summary, Service Revenue, Gas & Oil Expense,
Cleaning Supplies Expense, Depreciation Expense, Insurance Expense, Salaries Expense.

(a) Journalize the July transactions.
(b) Post to the ledger accounts. (Use T accounts.)
(c) Prepare a trial balance at July 31.
(d) Journalize the following adjustments.
(1) Services provided but unbilled and uncollected at July 31 were $1,700.
(2) Depreciation on equipment for the month was $250.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $360 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $400.
(e) Post adjusting entries to the T accounts.
(f) Prepare an adjusted trial balance.
(g) Prepare the income statement and a retained earnings statement for July and a classified
balance sheet at July 31.
(h) Journalize and post closing entries and complete the closing process.
(i) Prepare a post-closing trial balance at July 31.

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