Question

Problem 4-05A a-g (Part Level Submission) (Video)

Crane Clark opened Crane’s Cleaning Service on July 1, 2020. During July, the following transactions were completed.

July 1		Crane invested $19,900 cash in the business.
1		Purchased used truck for $8,800, paying $3,900 cash and the balance on account.
3		Purchased cleaning supplies for $2,000 on account.
5		Paid $1,800 cash on 1-year insurance policy effective July 1.
12		Billed customers $4,500 for cleaning services.
18		Paid $1,600 cash on amount owed on truck and $1,500 on amount owed on cleaning supplies.
20		Paid $2,500 cash for employee salaries.
21		Collected $3,400 cash from customers billed on July 12.
25		Billed customers $6,000 for cleaning services.
31		Paid $350 for the monthly gasoline bill for the truck.
31		Withdraw $5,600 cash for personal use. (1)Unbilled and uncollected revenue for services performed at July 31 were $2,700.(2)Depreciation on equipment for the month was $500.(3)One-twelfth of the insurance expired.(4)An inventory count shows $600 of cleaning supplies on hand at July 31.(5)Accrued but unpaid employee salaries were $1,010. Journalize adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order displayed in the problem.)

Answer 1

Prepared the adjusting journal entries as requested.