Cash No.

101
Date Explanation Debit Credit Balance
1-Jul Investment $ 20,000.00 $ 20,000.00
1-Jul Truck purchased $ 4,000.00 $ 16,000.00
5-Jul Insurance policy $ 1,800.00 $ 14,200.00
18-Jul Payables $ 2,900.00 $ 11,300.00
20-Jul Salaries Expense $ 2,500.00 $ 8,800.00
21-Jul Accounts Receivables $ 3,400.00 $ 12,200.00
31-Jul Gasoline Expense $ 350.00 $ 11,850.00
31-Jul Drawings $ 5,600.00 $ 6,250.00

Accounts Receivables No. 112

Date Explanation Debit Credit Balance
12-Jul Service Revenue $ 4,500.00 $ 4,500.00
21-Jul Cash received $ 3,400.00 $ 1,100.00
25-Jul Service Revenue $ 6,000.00 $ 7,100.00
1 Service Revenue $ 2,700.00 $ 9,800.00

Supplies No. 128

Date Explanation Debit Credit Balance
3-Jul Supplies on account $ 2,100.00 $ 2,100.00
5) Supplies expense $ 1,500.00 $ 600.00

Prepaid Insurance No. 130

Date Explanation Debit Credit Balance
5-Jul Insurance policy $ 1,800.00 $ 1,800.00
3) Insurance expense $ 150.00 $ 1,650.00

Equipment No. 130

Date Explanation Debit Credit Balance
1-Jul Truck purchased $ 9,000.00 $ 9,000.00

Accounts Payable No. 130

Date Explanation Debit Credit Balance
1-Jul Truck purchased $ 5,000.00 $ 5,000.00
3-Jul Supplies on account $ 2,100.00 $ 7,100.00
18-Jul Payables $ 2,900.00 $ 4,200.00
 Owner's Capital No. 130
Date Explanation Debit Credit Balance
1-Jul Investment $ 20,000.00 $ 20,000.00

Owner's Drawings No. 130

Date Explanation Debit Credit Balance
31-Jul Drawings $ 5,600.00 $ 5,600.00

Service Revenue No. 130

Date Explanation Debit Credit Balance
12-Jul Service Revenue $ 4,500.00 $ 4,500.00
25-Jul Service Revenue $ 6,000.00 $ 10,500.00
1 Service Revenue $ 2,700.00 $ 13,200.00

Gasoline Expense No. 130

Date Explanation Debit Credit Balance
31-Jul Gasoline Expense $ 350.00 $ 350.00

Salaries and Wages Expense No. 130

Date Explanation Debit Credit Balance
20-Jul Salaries Expense $ 2,500.00 $ 2,500.00
5) Salaries Expense $ 1,000.00 $ 3,500.00

Depriciation expense-equipment 711

Date Explanation Debit Credit Balance
2) Depriciation $ 500.00 $ 500.00

Accumulated depriciation-equipment 158

Date Explanation Debit Credit Balance
2) Depriciation $ 500.00 $ 500.00

Insurance expense No. 722

Date Explanation Debit Credit Balance
3) Insurance expense $ 150.00 $ 150.00

Supplies expense No,631

Date Explanation Debit Credit Balance
4) Supplies expense $ 1,500.00 $ 1,500.00

Salaries & wages payable 158

Date Explanation Debit Credit Balance
5) Accrued salaries $ 1,000.00 $ 1,000.00
Date Account titles Debit Credit

Jul-01 Cash 20000

Owner's capital 20000

Jul-01 Equipment 9000

Cash 4000
Accounts payable 5000

Jul-03 Supplies 2100

accounts payable 2100

Jul-05 Prepaid insurance 1800

cash 1800

Jul-12 Accounts receivable 4500

service revenue 4500

Jul-18 Accounts payable 2900

cash 2900

Jul-20 salaries & wages expense 2500

cash 2500

Jul-21 Cash 3400

Accounts receivable 3400

Jul-25 Accounts receivbale 6000

service revenue 6000

Jul-31 Gasoline expense 350

cash 350

Jul-31 Drawings 5600

cash 5600

Adjusting entries
a Accounts receivable 2700
service revenue 2700

b Depriciation expense-equipment 500

Accumulated depriciation-equipment 500

c Insurance expense 150

Prepaid insurance 150
(1800*1/12 months)

e Supplies expense $ 1,500.00

supplies $ 1,500.00

f Salaries & wages expense 1000

Salaries & wages payable 1000

Closing entries

g Service revenue $ 13,200

Income summary $ 13,200

h Income summary $ 6,000

Gasoline Expense $ 350
Salaries and Wages Expense $ 3,500
Depriciation expense-equipment $ 500
Insurance expense $ 150
Supplies expense $ 1,500

i Income summary $ 7,200

Owner;s capital $ 7,200

j Owner's capital 5600

owner's drawings 5600
 Unadjusted trial balance Adjustments Adjusted trial balance
Items Debit Credit Debit Credit Debit Credit Balance sheet
Cash $ 6,250 $ 6,250 Current Assets
Accounts Receivables $ 7,100 $ 2,700 $ 9,800 Cash $ 6,250
Supplies $ 2,100 $ 1,500 $ 600 Accounts Receivables $ 9,800
Prepaid Insurance $ 1,800 $ 150 $ 1,650 Supplies $ 600
Equipment $ 9,000 $ 9,000 Prepaid Insurance $ 1,650 $ 18,300
Accounts Payable $ 4,200 $ 4,200
Owner's Capital $ 20,000 $ 20,000 PP&E
Owner's Drawings $ 5,600 $ 5,600 Equipment $ 9,000
Service Revenue $ 10,500 $ 2,700 $ 13,200 Less:Accumulated depriciation $ (500) $ 8,500
Gasoline Expense $ 350 $ 350
Salaries and Wages Expense $ 2,500 $ 1,000 $ 3,500 Total assets $ 26,800
Depriciation expense-equipment $ 500 $ 500
Accumulated depriciation-equipment $ 500 $ 500 Current Liabilities
Insurance expense $ 150 $ 150 Accounts Payable $ 4,200
Supplies expense $ 1,500 $ 1,500 Salaries & wages payable $ 1,000 $ 5,200
Salaries & wages payable $ 1,000 $ 1,000
Owner's equity $ 21,600
$ 34,700 $ 34,700 $ 5,850 $ 5,850 $ 38,900 $ 38,900
Total liabilites & equity $ 26,800

Income statement
Service revenue $ 13,200

Less:expenses
Gasoline Expense $ 350
Salaries and Wages Expense $ 3,500
Depriciation expense-equipment $ 500
Insurance expense $ 150
Supplies expense $ 1,500
$ 6,000

Net Income $ 7,200

Statement of owner's equity

Opening Balance $ 20,000
Add:net income $ 7,200
Less:drawings $ (5,600)
Clsoing balance $ 21,600
 Unadjusted trial balance Adjustments Adjusted trial balance Income statement Balance sheet
Items Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash $ 6,250 $ 6,250 $ 6,250
Accounts Receivables $ 7,100 $ 2,700 $ 9,800 $ 9,800
Supplies $ 2,100 $ 1,500 $ 600 $ 600
Prepaid Insurance $ 1,800 $ 150 $ 1,650 $ 1,650
Equipment $ 9,000 $ 9,000 $ 9,000
Accounts Payable $ 4,200 $ 4,200 $ 4,200
Owner's Capital $ 20,000 $ 20,000 $ 20,000
Owner's Drawings $ 5,600 $ 5,600 $ 5,600
Service Revenue $ 10,500 $ 2,700 $ 13,200 $ 13,200
Gasoline Expense $ 350 $ 350 $ 350
Salaries and Wages Expense $ 2,500 $ 1,000 $ 3,500 $ 3,500
Total $ 34,700 $ 34,700
Depriciation expense-equipment $ 500 $ 500 $ 500
Accumulated depriciation-equipment $ 500 $ 500 $ 500
Insurance expense $ 150 $ 150 $ 150
Supplies expense $ 1,500 $ 1,500 $ 1,500
Salaries & wages payable $ 1,000 $ 1,000 $ 1,000
Totals $ 5,850 $ 5,850 $ 38,900 $ 38,900
Net Income $ 7,200 $ 7,200
Totals $ 13,200 $ 13,200 $ 32,900 $ 32,900