Anya Clark opened Anya’s Cleaning Service on July 1, 2017. During July, the foll
ID: 2492959 • Letter: A
Question
Anya Clark opened Anya’s Cleaning Service on July 1, 2017. During July, the following transactions were completed.
July 1 Anya invested $19,800 cash in the business.
1 Purchased used truck for $8,800, paying $3,800 cash and the balance on account.
3 Purchased cleaning supplies for $1,900 on account.
5 Paid $1,680 cash on 1-year insurance policy effective July 1.
12 Billed customers $4,400 for cleaning services.
18 Paid $1,400 cash on amount owed on truck and $1,300 on amount owed on cleaning supplies.
20 Paid $2,400 cash for employee salaries.
21 Collected $3,300 cash from customers billed on July 12.
25 Billed customers $5,900 for cleaning services.
31 Paid $340 for the monthly gasoline bill for the truck.
31 Withdrew $5,500 cash for personal use.
Explanation / Answer
Date Particulars Debit Credit 1-Jul Cash 19800 Anya's Capital 19800 Capital introduced in business 1-Jul Truck 8800 Cash 3800 Accounts Payable 5000 Truck purchased 3-Jul Supplies 1900 Accounts Payable 1900 Supplies purchased 5-Jul Prepaid Insurance 1680 Cash 1680 Insurance paid for 1 year 12-Jul Accounts Receivables 4400 Service Revenue 4400 service provided on account 18-Jul Accounts Payable 2700 Cash 2700 Amount paid on account of truck & supplies 20-Jul Salaries expense 2400 Cash 2400 Salary expense paid 21-Jul Cash 3300 Accounts Receivables 3300 Cash received from customer on account 25-Jul Accounts Receivables 5900 Service Revenue 5900 service provided on account 31-Jul Gasoline expense 340 Cash 340 Gasoline expense paid 31-Jul Anya's drawings 5500 Cash 5500 Amount withdrawn for personal use
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