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Pro-Window Washing Inc.

General Journal
Account Titles and Explanation

Date
2012
July

Cash

Debit

Credit

12,000
Common Stock

12,000
(issued stock for cash)

July

Equipment

8,000
Cash
Accounts Payable
(to record equipment purchase on account)

July

Supplies

900
Accounts Payable
(to record supplies purchased on account)

July

July

July

12

18

2000
6000

Prepaid insurance
Cash

900

1,800
1,800
(Paid 1-year insurance policy effective July 1.)

Accounts Receivable
3700
Service Revenue
(Billed customer for service provided)

Accounts payable
Supplies Expense
Cash

3700

1000
500
1500
(to record payment on accounts)

July

20

Salary And Wages Expense


CASH

2000
2000
(to record salaries paid in cash)

July

21

Cash

1,600
Accounts Receivable
1600
(Collect cash from customers billed on July 12.)

July

25

Accounts Receivable
Service Revenue

2,500
2,500

(Billed customer for service provided


July

31

Maintenance & Repairs Expense


290
Cash
290
(Paid $290 for maintenance of the truck during month.)

July

31

Dividends

600
Cash

600
(Declared and paid a cash dividend)

July

31

July

31

July

July

Adjusting entries
Accounts Receivable
1700
Service Revenue
1700
(Services provided but unbilled and uncollected)
Depreciation Expense

31

180
Accumulated Depreciation Equipment
(to record depreciation)

Insurance Expense
150
Prepaid insurance
(to record expired insuranced)

31

Supplies Expense
Supplies

180

150

580
580
(to record supplies used)

July

31

Salary and Wages Expense


Salary & Wages Payable
(to record salary accruals)

Date
2012
1 july

31

31
2

400
400

Post Closing Entries


Account Title and Explanation
Closing Entries
Service Revenue
Income summary
(to close revenue account)
Income Summary
Insurance Expense

miantenance and repair


Supplies Expense
Salary & wages exp
Dep Exp
(to close exp accounts)
3

31

Income Summary
Retained Earnings
(to close net income to ret earnings)

31

Income Summary
Dividends
(to close dividends to retained earnings)

1=Rev

closing

closing BAL

Service Revenue
7900
July 12
july 25
july 31
7,900 BAL

3,700
2,500
1,700
7,900

Insurance Expense
july 31 adj
BAL

closing

150

Maintenance & Repairs Expense


290
290
closing

July 31
BAL

July 18
july adj
BAL

July 31 adj
BAL

31-Jul
Bal

150
150

290

Supplies Expense
500
580
1,080 closing

1080

Salary and Wages Expense


400
400
closing

400

Depreciation Expense
180
180 closing

180

Calc
13600
-8190
5410

900
-580
320

July 1

CASH
12,000
July 1
1600
July 5
July 18
July 31
july 20
July 31
13,600
Equipment
8000

July 3
bal

Supplies
900
july adj
320

july 1
july 21

July 12
July 25
A1 31-Jul
Bal

2000
-400
1600

Accounts Receivable
3,700
July 21
2,500
1,700
6,300

july 20
Bal

Salary and Wages Payable


2000 July 31 adj
1,600

July 5
Bal

Prepaid Ins
1,800
july 31 adj
1,650

2000
1,800
1,500
290
2000
600
8190

580

1600

400

150

ing month.)

Pro Window Washing


Adjusted Trial Balance

A1
Cash
Accounts Receivable
Equipment
Supplies
Salary and Wages Payable
Prepaid ins
Accumulation deprec - Eq
Accounts Payable
Common stock
Dividends
Service Revenue
Insurance Expense
miantenance and repair
Supplies Expense
Salary & wages exp
Dep Exp

A2

A3

A4

A5

s
Debit

Credit

7900
7900

2100
150

290
1080
400
180

5800
5800

ome to ret earnings)


600
600

ds to retained earnings)

Income Summary
7900
2=Exp closing
3=Net Inc

4=div

2100
5800
7900

1=Rev

7900

Retained Earnings
600
Bal

0
5800
5200

3=net inc

General Ledger
Common Stock
july 1

truck
insurance

12,000

dividend
Accumulated Depreciation Equipment
31-Jul
180

A2

A4

July 18
A4 july adj
BAL
3700
2500 July 18
1700
7900
-1600
6300
3700
2500
1700
7900

900
-320
580

Accounts Payable
1,000
july 1
July 3
bal

6000
900
-1000
5900

Dividends
july 31
BAL

A2

Supplies Expense
500
580
1080

Service Revenue
July 12
july 25
july 31
BAL

Depreciation Expe

600
600

July 31
BAL

Maintenance & Repairs Expense


290
290

3 july 31 adj
BAL

Insurance Expense
150
150

6,000
900
5900

31-Jul

Salary and Wages Ex


3,700
2,500
1,700 A1
7,900

July 31 adj
BAL

Pro Window Washing


Adjusted Trial Balance
Debit

Pro Window Wash


Income Stmt
july 31 2012

Credit
5410
6300
8000
320
1600
1650

revenues
Service Revenue
expenses
180
5900
12,000

600

Insurance Expense
miantenance and repair
Supplies Expense
Salary & wages exp
Dep Exp

7900
150
290
1080
400
180
25980

net income

25980
Cash
Accounts Receivable
Equipment
Supplies
Prepaid ins
Accumulation deprec - Eq

Accounts Payable
salary and wages payable

Common stock
retained earnings

Pro Window Washing


Post Closing Balance

Income Summary
Retained Earnings
Retained Earnings
Dividends

Debit
7900

600

A post-closing trialbalance is a list of all permanent accounts and their balances after closing entries are
journalized and posted. P188

Depreciation Expense
180

2500
1700
4200
-1000
3200

Salary and Wages Expense


400
400

Pro Window Washing


Income Stmt
july 31 2012

Pro Window Washing


Retained Earnings
july 31 2012

rvice Revenue

7900

surance Expense
antenance and repair
upplies Expense
lary & wages exp

150
290
1080
400
180

total exp

Balance Sheet
Assets
5410
6300
8000
320
1650

ccumulation deprec - Eq
total Assets

ccounts Payable
lary and wages payable
total liabilities

less dividends
reained earnings

2100
5800

ccounts Receivable

180
21500
Liabilities
5900
1600
`
shareholder equity

Retained Earnings july 1


add net icome

7500

ommon stock
tained earnings

12,000
5200
17,200
24700

Pro Window Washing


Post Closing Balance
Credit
7900

5800

ances after closing entries are

Cash
Accounts Receivable
Equipment
Supplies
Prepaid ins
Accumulation deprec - Eq
total Assets
Liabilities
Accounts Payable
salary and wages payable
total liabilities
shareholder equity
Common stock
retained earnings

Pro Window Washing


Retained Earnings
july 31 2012

d net icome

0
5800

ss dividends
ained earnings

600
5200

Pro Window Washing


Post Closing Balance
5410
6300
8000
320
1650
180
21500
5900
1600
`

7500

areholder equity
12,000
5200
17,200