Heidi Jara opened Bridgeport’s Cleaning Service on July 1, 2019. During July, th
ID: 2413610 • Letter: H
Question
Heidi Jara opened Bridgeport’s Cleaning Service on July 1, 2019. During July, the following transactions were completed.July 1 Stockholders invested $20,100 cash in the business in exchange for common stock. 1 Purchased used truck for $9,200, paying $4,100 cash and the balance on account. 3 Purchased cleaning supplies for $2,000 on account. 5 Paid $1,680 cash on a 1-year insurance policy effective July 1. 12 Billed customers $3,060 for cleaning services. 18 Paid $1,600 cash on amount owed on truck and $1,440 on amount owed on cleaning supplies. 20 Paid $2,530 cash for employee salaries. 21 Collected $3,460 cash from customers billed on July 12. 25 Billed customers $5,970 for cleaning services. 31 Paid $350 for the monthly gasoline bill for the truck. 31 Paid a $5,610 cash dividend.
The chart of accounts for Bridgeport’s Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. Heidi Jara opened Bridgeport’s Cleaning Service on July 1, 2019. During July, the following transactions were completed.
July 1 Stockholders invested $20,100 cash in the business in exchange for common stock. 1 Purchased used truck for $9,200, paying $4,100 cash and the balance on account. 3 Purchased cleaning supplies for $2,000 on account. 5 Paid $1,680 cash on a 1-year insurance policy effective July 1. 12 Billed customers $3,060 for cleaning services. 18 Paid $1,600 cash on amount owed on truck and $1,440 on amount owed on cleaning supplies. 20 Paid $2,530 cash for employee salaries. 21 Collected $3,460 cash from customers billed on July 12. 25 Billed customers $5,970 for cleaning services. 31 Paid $350 for the monthly gasoline bill for the truck. 31 Paid a $5,610 cash dividend.
The chart of accounts for Bridgeport’s Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. Date Account Titles and Explanation Debit Credit
Problem 4-5A (Part Level Submission)
Heidi Jara opened Bridgeport’s Cleaning Service on July 1, 2019. During July, the following transactions were completed.July 1 Stockholders invested $20,100 cash in the business in exchange for common stock. 1 Purchased used truck for $9,200, paying $4,100 cash and the balance on account. 3 Purchased cleaning supplies for $2,000 on account. 5 Paid $1,680 cash on a 1-year insurance policy effective July 1. 12 Billed customers $3,060 for cleaning services. 18 Paid $1,600 cash on amount owed on truck and $1,440 on amount owed on cleaning supplies. 20 Paid $2,530 cash for employee salaries. 21 Collected $3,460 cash from customers billed on July 12. 25 Billed customers $5,970 for cleaning services. 31 Paid $350 for the monthly gasoline bill for the truck. 31 Paid a $5,610 cash dividend.
The chart of accounts for Bridgeport’s Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense.
Explanation / Answer
Journal entries
Date(2019)
Account Title
Debit
Credit
1-Jul
Cash
$ 20,100.00
Common Stock
$ 20,100.00
(To record cash invested in business)
1-Jul
Equipment
$ 9,200.00
Cash
$ 4,100.00
Accounts Payable
$ 5,100.00
(To record Truck Purchased)
3-Jul
Supplies
$ 2,000.00
Accounts Payable
$ 2,000.00
(supplies purchased on credit)
5-Jul
Prepaid Insurance
$ 1,680.00
Cash
$ 1,680.00
(advance Insurance premium paid)
12-Jul
Accounts Receivable
$ 3,060.00
Service Revenue
$ 3,060.00
(Bill Raised for services rendered)
18-Jul
Accounts Payable
$ 3,040.00
Cash
$ 3,040.00
(paid for supplies 1440 for supplies and 1600 for truck )
20-Jul
Salaries and wages expense
$ 2,530.00
Commission Income
$ 2,530.00
(salaries paid)
21-Jul
Cash
$ 3,460.00
Accounts Receivable
$ 3,060.00
Advance from Customer
$ 400.00
(Amount received)
25-Jul
Accounts Receivable
$ 5,970.00
Service Revenue
$ 5,970.00
(Bill Raised for services rendered)
31-Jul
Gasoline Expense
$ 350.00
Cash
$ 350.00
(gasoline expense paid)
31-Jul
Dividends
$ 5,610.00
Cash
$ 5,610.00
(dividends paid in cash)
31-Jul
Insurance expense
$ 140.00
Prepaid Insurance
$ 140.00
(one month insurance expired)
$ 57,140.00
$ 57,140.00
Journal entries
Date(2019)
Account Title
Debit
Credit
1-Jul
Cash
$ 20,100.00
Common Stock
$ 20,100.00
(To record cash invested in business)
1-Jul
Equipment
$ 9,200.00
Cash
$ 4,100.00
Accounts Payable
$ 5,100.00
(To record Truck Purchased)
3-Jul
Supplies
$ 2,000.00
Accounts Payable
$ 2,000.00
(supplies purchased on credit)
5-Jul
Prepaid Insurance
$ 1,680.00
Cash
$ 1,680.00
(advance Insurance premium paid)
12-Jul
Accounts Receivable
$ 3,060.00
Service Revenue
$ 3,060.00
(Bill Raised for services rendered)
18-Jul
Accounts Payable
$ 3,040.00
Cash
$ 3,040.00
(paid for supplies 1440 for supplies and 1600 for truck )
20-Jul
Salaries and wages expense
$ 2,530.00
Commission Income
$ 2,530.00
(salaries paid)
21-Jul
Cash
$ 3,460.00
Accounts Receivable
$ 3,060.00
Advance from Customer
$ 400.00
(Amount received)
25-Jul
Accounts Receivable
$ 5,970.00
Service Revenue
$ 5,970.00
(Bill Raised for services rendered)
31-Jul
Gasoline Expense
$ 350.00
Cash
$ 350.00
(gasoline expense paid)
31-Jul
Dividends
$ 5,610.00
Cash
$ 5,610.00
(dividends paid in cash)
31-Jul
Insurance expense
$ 140.00
Prepaid Insurance
$ 140.00
(one month insurance expired)
$ 57,140.00
$ 57,140.00
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