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Asked Feb 5, 2020
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Carma Garcia opened Shifting Sands Cleaning Service on August 1. During August, the company completed the following transactions:
Aug1 Carma Garcia invested $45,530 cash and $8,765 of cleaning equipment in the business.
1 Purchased a used truck for $10,500, paying $4,000 cash and the balance on account.
3 Purchased cleaning supplies for $1,985 on account.
5 Paid $1,800 on a one-year insurance policy, effective August 1.
8 Received $1,650 from customer for future cleaning services.
12 Billed customers $5,830 for cleaning services.
18 Paid $2,000 of amount owed on truck.
20 Paid $1,672 for employee salaries.
21 Collected $3,795 from customers billed on August 12.
25 Billed customers $4,369 for cleaning services.
31 Paid gasoline for the month on the truck, $325.
31 Owner withdrew $1,000 for personal use.
Adjustments:
Aug31 Earned but unbilled fees at August 31 were $2,145.
Depreciation on truck for the month was $175.
Earned $450 of payment received on August 8.
One-twelfth of the insurance expired.
An inventory count shows $547 of cleaning supplies on hand at August 31.
Accrued but unpaid employee salaries were $689.

Required: Journalize and post the closing entries. Prepare a post-closing trial balance.

Adjusted Trial Balance
31-Aug
Credit
Debit
Account
Balance
Balance
Cash
40,178
10,500
Truck
Cleaning equipment
Accumulated depreciation
Accounts receivable
Prepaid Insurance
Withdrawal
8,765
175
8,549
1,650
1,000
Supplies
547
Cleaning supplies expense
Salaries expense
Gasoline expense
Depreciation expense
Insurance expense
Unearned cleaning revenue
Capital
Accounts payable
Salaries payable
1,438
2,361
325
175
150
1,200
54,295
6,485
689
12,794
Cleaning revenue
75,638
Total
75,638
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Adjusted Trial Balance 31-Aug Credit Debit Account Balance Balance Cash 40,178 10,500 Truck Cleaning equipment Accumulated depreciation Accounts receivable Prepaid Insurance Withdrawal 8,765 175 8,549 1,650 1,000 Supplies 547 Cleaning supplies expense Salaries expense Gasoline expense Depreciation expense Insurance expense Unearned cleaning revenue Capital Accounts payable Salaries payable 1,438 2,361 325 175 150 1,200 54,295 6,485 689 12,794 Cleaning revenue 75,638 Total 75,638

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Step 1: Journal for closing.

Accounting homework question answer, step 1, image 1

Step 2: Posting of closing entries.

Accounting homework question answer, step 2, image 1

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