Problem-  Dana La Fontseeopened Pro Window Washing Inc. on July 1, 2012. During July

the followingtransactions were completed.

July 1- Issued 12,000shares of common stock for $12,000 cash.

July 1- Purchasedused truck for $8,000, paying $2,000 cash and the balance on

account.

July 3 - Purchasedcleaning supplies for $900 on account.

July 5 - Paid $1,800 cash on 1-year insurance policyeffective July 1.

July 12 - Billedcustomers $3,700 for cleaning services.

July 18 - Paid $1,000cash on amount owed on truck and $500 on amount owed on

cleaning supplies.

July 20 - Paid $2,000cash for employee salaries.

July 21 - Collected $1,600 cash from customers billedon July 12.

July 25 - Billed customers $2,500 for cleaning services.

July 31 - Paid $290for maintenance of the truck during month.

July 31 - Declared and paid $600 cash dividend.

The chart of accountsfor Pro Window Washing contains the following accounts: Cash,

Accounts Receivable,Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation—

Equipment, AccountsPayable, Salaries and Wages Payable, Common Stock, Retained

Earnings, Dividends,Income Summary, Service Revenue, Maintenance and Repairs Expense,

Supplies Expense,Depreciation Expense, Insurance Expense, Salaries and Wages

Expense.

Instructions

(a) Journalize theJuly transactions.

(b) Post to theledger accounts. (Use T accounts.)

(c) Prepare a trialbalance at July 31.

(d) Journalize thefollowing adjustments.

(1) Services providedbut unbilled and uncollected at July 31 were $1,700.

(2) Depreciation onequipment for the month was $180.

(3) One-twelfth ofthe insurance expired.

(4) An inventorycount shows $320 of cleaning supplies on hand at July 31.

(5) Accrued butunpaid employee salaries were $400.

(e) Post adjustingentries to the T accounts.

(f ) Prepare anadjusted trial balance.

(g) Prepare theincome statement and a retained earnings statement for July and a classified

balance sheet at July31.

(h) Journalize andpost closing entries and complete the closing process.

(i) Prepare a post-closing trialbalance at July 31.