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Lee Chang opened Cullumber's Window Washing on July 1, 2021. In July, the following transactions were completed:July 1 Invested $26,000 cash in the business.1 Purchased a used truck for $25,200, paying $5,200 cash and signing a note payable for the balance.1 Paid $2,800 on a one-year insurance policy, effective July 1.5 Billed customers $3,900 for cleaning services.12 Purchased supplies for $2,100 on account.18 Paid $3,000 for employee salaries.25 Billed customers $9,200 for cleaning services.28 Collected $3,900 from customers billed on July 5.31 Paid $550 for repairs on the truck.31 Withdrew $1,700 cash for personal use.  Journalize and post the July transactions to the general ledger

Question
 
Lee Chang opened Cullumber's Window Washing on July 1, 2021. In July, the following transactions were completed:

July 1   Invested $26,000 cash in the business.
1   Purchased a used truck for $25,200, paying $5,200 cash and signing a note payable for the balance.
1   Paid $2,800 on a one-year insurance policy, effective July 1.
5   Billed customers $3,900 for cleaning services.
12   Purchased supplies for $2,100 on account.
18   Paid $3,000 for employee salaries.
25   Billed customers $9,200 for cleaning services.
28   Collected $3,900 from customers billed on July 5.
31   Paid $550 for repairs on the truck.
31   Withdrew $1,700 cash for personal use.
 
 

Journalize and post the July transactions to the general ledger

check_circleAnswer
Step 1

Journalizing is a procedure distinguishing and recording the exchanges of business in the books of records in a sequential request. The bookkeeper needs to perceive and look at the exchanges that influences the business and record every passage in a diary joined by date and portrayal of the exchange. The passages are recorded as the Debit adjusts and Credit adjusts.

The brilliant principles of accounting that should be remembered for journalizing are:

1.Personal record: The collector should be debit; the supplier should be credit.

2.Real record: What comes in should be debit; what goes out should be credit"

3.Nominal record: All costs and misfortunes should be debit; all earnings and gains should be credit."

Step 2

Journal entries are on the white board

Journal entries in the books of L on l
July,2021
Accounts title and explanation
Date
Debit
Credit
28th July
Cash
$3,900
2021
$26.000
$3,900
July
Accounts receivables
Cash
L Capital
(Being cash brought into the business)
$26,000
(To record cash received for the service
rendered on 5 July)
1th July
Repairs
Cash
$550
31 July
$25,200
Truck
Cash
Notes payable
(To record the purchase of secondhand
truck partly on cash and partly by signing
notes pavable)
$5.200
$20,000
$550
(To record the repairs paid on truck)
31 July
$1,700
Drawings
Cash
To record drawings)
$1,700
1 tH July
$2,800
Prepaid insurance
Cash
$2,800
(To record the amount of insurance paid
in advance)
5 July
$3,900
Accounts receivables
$3,900
Service revenue
(To record cleaning services performed on
account)
Supplies
Accounts payable
(To record the purchase of supplies on
account)
12 July
$2,100
$2,100
18 July
Salary expense
$3,000
$3.000
Cash
(To record the payment of salary of
employees)
25t July
$9,200
Accounts receivables
$9.200
Service revenue
(To record cleaning services performed on
account)
help_outline

Image Transcriptionclose

Journal entries in the books of L on l July,2021 Accounts title and explanation Date Debit Credit 28th July Cash $3,900 2021 $26.000 $3,900 July Accounts receivables Cash L Capital (Being cash brought into the business) $26,000 (To record cash received for the service rendered on 5 July) 1th July Repairs Cash $550 31 July $25,200 Truck Cash Notes payable (To record the purchase of secondhand truck partly on cash and partly by signing notes pavable) $5.200 $20,000 $550 (To record the repairs paid on truck) 31 July $1,700 Drawings Cash To record drawings) $1,700 1 tH July $2,800 Prepaid insurance Cash $2,800 (To record the amount of insurance paid in advance) 5 July $3,900 Accounts receivables $3,900 Service revenue (To record cleaning services performed on account) Supplies Accounts payable (To record the purchase of supplies on account) 12 July $2,100 $2,100 18 July Salary expense $3,000 $3.000 Cash (To record the payment of salary of employees) 25t July $9,200 Accounts receivables $9.200 Service revenue (To record cleaning services performed on account)

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Step 3

Ledgers are on the ...

Cash account
Truck account
Amount
(S)
26.000 1 July
Date
Date
Amount
($)
5,200
Date
Particulars
Particulars
Amount ($)
Date
Amount
1 July
28 July
Particulars
(S)
Particulars
L capital
Truck
5,200
1 July
1tH July
Prepaid
Cash
31 July Balance c/d
(balancing
figure)
3.900
2,800
Accounts receivables
insurance
18th July Salary expense
31 July Repairs
3,000
Notes payable
20,000
25.200
25,200
25,200
550
31 July
Drawings
31 July Balance c/d
(balancing
figure)
1,700
Notes payable
16,650
29,900
Date
Amount
Date
29.900
Amount (S)
(S)
Particulars
Particulars
July
20,000
Capital account
Truck
31
Date
Amount ($) Date
1t
Amount (S)
Particulars
Particulars
July
Balance c/d (balancing firure)
20.000
20,000
20,000
July
Cash
26.000
Balance o/d (balancing
figure)
26.000
Prepaid insurance account
31 July
26,000
26,000
Date
Date
Amount
Amount (S)
2,800
($)
Particulars
Particulars
1 July
Cash
31
Balance c/d
July (balancing figure)
2,800
2,800
2,800
help_outline

Image Transcriptionclose

Cash account Truck account Amount (S) 26.000 1 July Date Date Amount ($) 5,200 Date Particulars Particulars Amount ($) Date Amount 1 July 28 July Particulars (S) Particulars L capital Truck 5,200 1 July 1tH July Prepaid Cash 31 July Balance c/d (balancing figure) 3.900 2,800 Accounts receivables insurance 18th July Salary expense 31 July Repairs 3,000 Notes payable 20,000 25.200 25,200 25,200 550 31 July Drawings 31 July Balance c/d (balancing figure) 1,700 Notes payable 16,650 29,900 Date Amount Date 29.900 Amount (S) (S) Particulars Particulars July 20,000 Capital account Truck 31 Date Amount ($) Date 1t Amount (S) Particulars Particulars July Balance c/d (balancing firure) 20.000 20,000 20,000 July Cash 26.000 Balance o/d (balancing figure) 26.000 Prepaid insurance account 31 July 26,000 26,000 Date Date Amount Amount (S) 2,800 ($) Particulars Particulars 1 July Cash 31 Balance c/d July (balancing figure) 2,800 2,800 2,800

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