Answer:
Transactions :
July 1
Cash $39,870 (debit)
Cleaning Equipment $2,500 (debit)
Capital $42,370 (credit)
July 1
Truck $10,500 (debit)
Cash $2,500 (credit)
Accounts Payable $8,000 (credit)
July 3
Cleaning Supplies $1,794 (debit)
Accounts Payable $1,794 (credit)
July 5
Prepaid Insurance $1,800 (debit)
Cash $1,800 (credit)
July 12
Trade Receivable $4,813 (debit)
Service Revenue $4,813 (credit)
July 15
Cash $1,650 (debit)
Deferred Revenue $1,650 (credit)
July 18
Accounts Payable $1,200 (debit)
Cash $1,200 (credit)
July 20
Cash $3,632 (debit)
Accounts Receivable $3,632 (credit)
July 25
Trade Receivables $6,275 (debit)
Service Revenue $6,275 (credit)
July 31
Utilities : Gasoline $297 (debit)
Cash $297 (credit)
July 31
Capital $1,000 (debit)
Cash $1,000 (credit)
Adjustments:
July 31
Cash $2,476 (debit)
Deferred Revenue $2,476 (credit)
July 31
Depreciation $175 (debit)
Accumulated Depreciation $175 (credit)
July 31
Deferred Revenue $450 (debit)
Revenue $450(credit)
July 31
Insurance Expense $150 (debit)
Insurance Prepaid $150 (credit)
July 31
Supplies Inventory $521 (debit)
Income statement $521 (credit)
July 31
Wages $287 (debit)
Wages Payable $287 (credit)
Explanation:
Journal entries have been made for both the <em>transactions </em>and <em>adjustments </em>that occurred during the period.
Note : Revenue earned but not billed is recorded as a Liability known as Deferred Revenue. The liability is de-recognized later as the customers or service is billed.
