a) Journalize and post the July transactions.

Use page J1 for the journal and the three-column form

of account.
General Journal Page: J1
Post/
Date Description Debit Credit
Ref.
July 01 Cash 101 €20,000 00
Share Capital-Ordinary 311 €20,000 00
To record shareholders’ investment
01 Equipment 160 €12,000 00
Cash 101 €4,000 00
Accounts Payable 201 €8,000 00
To record purchasing of used truck
03 Supplies 126 €2,100 00
Accounts Payable 201 €2,100 00
To record supplies on account
05 Prepaid Insurance 130 €3,600 00
Cash 101 €3,600 00
To record cash paid for 1 year insurance
12 Accounts Receivable 112 €5,900 00
Service Revenue 400 €5,900 00
To record cleaning service performed
18 Accounts Payable 201 €2,900 00
Cash 101 €2,900 00
To record cash paid for amount owed
20 Salaries and Wage Expense 726 €4,500 00
Cash 101 €4,500 00
To record cash paid for employee salaries
21 Cash 101 €4,400 00
Accounts Receivable 112 €4,400 00
To record cash receipt from customers
25 Accounts Receivable 112 €9,400 00
Service Revenue 400 €9,400 00
To record cleaning service performed
31 Gasoline Expense 633 €400 00
Cash 101 €400 00
To record cash paid for gasoline bill
31 Dividends 332 €1,200 00
Cash 101 €1,200 00
To record cash paid for dividend

Posting the transaction on three-column form of account

Account Name: Cash Account No.: 101
Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 01  €20,000 00 €20,000 00
01  €4,000 00 16,000 00
05  3,600 00 12,400 00
18  2,900 00 9,500 00
20  4,500 00 5,000 00
21  4,400 00 9,400 00
31  400 00 9,000 00
31  1,200 00 7,800 00
Account Name: Accounts Receivable Account No.: 112
Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 12  €5,900 00 €5,900 00
21  €4,400 00 1,500 00
25  9,400 00 10,900 00

Account Name: Supplies Account No.: 126

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 03  €2,100 00 €2,100 00

Account Name: Prepaid Insurance Account No.: 130

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 05  €3,600 00 €3,600 00

Account Name: Equipment Account No.: 157

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 01  €12,000 00 €12,000 00

Account Name: Accumulated Depreciation-Equipment Account No.: 158

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 01 Balance  €0 00 €0 00

Account Name: Accounts Payable Account No.: 201

Post/
Date Item Debit Credit Balance (Cr.)
Ref.
July 01  €8,000 00 €8,000 00
03  2,100 00 10,100 00
18  €2,900 00 7,200 00

Account Name: Salaries and Wages Payables Account No.: 212

Post/
Date Item Debit Credit Balance (Cr.)
Ref.
July 31 Balance  €0 00 €0 00

Account Name: Share Capital-Ordinary Account No.: 311

Post/
Date Item Debit Credit Balance (Cr.)
Ref.
July 01  €20,000 00 €20,000 00

Account Name: Retained Earnings Account No.: 320

 Post/
Date Item Debit Credit Balance (Cr.)
Ref.
July 31 Balance  €0 00 €0 00

Account Name: Dividends Account No.: 332

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 31  €1,200 00 €1,200 00

Account Name: Income Summary Account No.: 350

Post/ Balance (Dr.
Date Item Debit Credit
Ref. /Cr.)
July 31 Balance  €0 00 €0 00

Account Name: Service Revenue Account No.: 400

Post/
Date Item Debit Credit Balance (Cr.)
Ref.
July 12  €5,900 00 €5,900 00
25  9,400 00 15,300 00

Account Name: Gasoline Expense Account No.: 633

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 31  €400 00 €400 00

Account Name: Supplies Expense Account No.: 631

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 01 Balance  €0 00 €0 00

Account Name: Depreciation Expense Account No.: 711

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 01 Balance  €0 00 €0 00

Account Name: Insurance Expense Account No.: 722

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 31 Balance  €0 00 €0 00

Account Name: Salaries & Wages Expense Account No.: 726

Post/
Date Item Debit Credit Balance (Dr.)
Ref.
July 20  €4,500 00 €4,500 00
b) & (c) Prepare a trail balance at July 31 on a worksheet, enter the adjustments and complete the worksheet.

Unadjusted Trail Adjusted Trail

Adjustments Income Statement Balance Sheet
No. Account Title Balance Balance
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash €7,800 €7,800 €7,800
112 Accounts Receivable €10,900 (1)3,300 €14,200 €14,200
126 Supplies €2,100 (4)1,540 €560 €560
130 Prepaid Insurance €3,600 (3)300 €3,300 €3,300
157 Equipment €12,000 €12,000 €12,000
158 Accumulated Depreciation-Equip. €0 (2)500 €500 €500
201 Accounts Payable €7,200 €7,200 €7,200
212 Salaries & Wages Payable €0 (5)2,200 €2,200 €2,200
311 Share Capital-Ordinary €20,000 €20,000 €20,000
320 Retained Earnings €0 €0 €0
332 Dividends €1,200 €1,200 €1,200
350 Income Summary €0 €0 €0 €0
400 Service Revenue €15,300 (1)3,300 €18,600 €18,600
631 Supplies Expense €0 (4)1,540 €1,540 €1,540
633 Gasoline Expense €400 €400 €400
711 Depreciation Expense €0 (2)500 €500 €500
722 Insurance Expense €0 (3)300 €300 €300
726 Salaries & Wages Expense €4,500 (5)2,200 €6,700 €6,700
€42,500 €42,500 €7,840 €7,840 €48,500 €48,500 €9,440 €18,600 €39,060 €29,900
Net Income or Loss €9,160 -- -- €9,160
€18,600 €18,600 €39,060 €39,060
d) Prepare the income statement and retained earnings statement for July and a classified statement of
financial position at July 31.
Callebaut Cleaning Service, AG
Income Statement
For the month ended July 31, 2017
Revenue
Service Revenue €18,600.00
Expenses
Supplies Expense €1,540.00
Gasoline Expense €400.00
Depreciation Expense €500.00
Insurance Expense €300.00
Salaries and Wage Expense €6,700.00
Total Expenses €9,440.00
Net Income or Loss €9,160.00

Callebaut Cleaning Service, AG

Retained Earnings Statement
For the month ended July 31, 2017
Retained Earnings, as of July 1, 2017 €0.00
Add: Prior year adjustments €0.00
Net Income for the month 9,160.00 9,160.00
Sub total €9,160.00
Less: Dividends 1,200.00
Retained Earnings, as of July 31,2017 €7,960.00

Callebaut Cleaning Service, AG

Statement of Financial Position
July 31, 2017
Assets
Current Assets
Cash €7,800
Accounts Receivable 14,200
Supplies 560
Prepaid Insurance 3,300
Total Current Assets €25,860
Plant, Property and Equipment
Equipment €12,000
Accumulated Depreciation-Equipment (500)
Total Plant, Property and Equipment 11,500
Total Assets €37,360
Liabilities and Shareholder’s Equity
Liability
Current Liabilities
Accounts Payable €7,200
Salaries & Wages Payable 2,200
Total Current Liabilities €9,400
Long-term Liability 0.00
Total Liabilities €9,400
Shareholder’s Equity
Share Capital-Ordinary €20,000
Retained Earnings 7,960
Total Shareholder’s Equity 27,960
Total Liabilities & Shareholder’s Equity €37,360
e) Prepare a post-closing trail balance at July 31.

Callebaut Cleaning Service, AG

Post-closing Trail Balance
July 31, 2017
No. Account Title Debit Credit
101 Cash €7,800
112 Accounts Receivable €14,200
126 Supplies €560
130 Prepaid Insurance €3,300
157 Equipment €12,000
158 Accumulated Depreciation-Equip. €500
201 Accounts Payable €7,200
212 Salaries & Wages Payable €2,200
311 Share Capital-Ordinary €20,000
320 Retained Earnings €7,960
Total €37,860 €37,860