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linda_us, Master's Degree
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P4-8A Linda Blye opened Cardinal Window Washing

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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.


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


Purchased cleaning supplies for $900 on account.


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


Billed customers $3,200 for cleaning services.


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


Paid $2,000 cash for employee salaries.


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


Billed customers $2,500 for cleaning services.


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


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.
Hint: Complete all steps in accounting cycle.

(SO 4, 5, 6, 7, 8)



Journalize the July transactions.


Post to the ledger accounts. (Use T accounts.)


Prepare a trial balance at July 31.


Journalize the following adjustments.


Services provided but unbilled and uncollected at July 31 were $1,700.


Depreciation on equipment for the month was $250.


One-twelfth of the insurance expired.


An inventory count shows $360 of cleaning supplies on hand at July 31.


Accrued but unpaid employee salaries were $400.


Post adjusting entries to the T accounts.


Prepare an adjusted trial balance.

Cash $ 4,240


Prepare the income statement and a retained earnings statement for July and a classified balance sheet at July 31.

Tot. assets $21,000


Journalize and post closing entries and complete the closing process.


Prepare a post-closing trial balance at July 31.
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Customer: replied 4 years ago.

Thanks Linda! Smile This is a big help and I will use this as a guide with my other homework. This will help me out a lot in my accounting class. I might need you for more assistance.

Hi Robin

I am happy to help you. Please do rate my solution by clicking smiley face so that I get paid for my effort.
Customer: replied 4 years ago.

I had another question that needed answered and i applied for an answer. No one has help me yet,will you be abl to or should I wait for another person to help me.

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