Jim’s Cleaning Services prepares financial statements at the end of each month. The following information is in relation to the month of July.
1. On 1 July, rent of $3,600 for the 6-month period ending 31 December is paid.
2. A 1-year insurance policy is purchased on 1 July for $1,560.
3. On 10 July, the Cross Hotel paid the business $2,800 in advance for doing their cleaning for the next 3 months. 30% of the cleaning work has been provided in the month of July.
4. The cleaning supplies of $2,340 was purchased on 15 July. The supplies account had a $260 debit balance on 1 July and $220 of supplies are on hand as at 31 July.
5. The business has two part-time employees who each earn $190 per day. They were both worked 16 days in the month. They were paid for the 14 days on 28 July, but not for the last 2 days for which they have worked after 28 July.
a) Record the above transactions occurred in the month of July in the general journal.
b) Prepare the necessary adjusting entries at the end of the month of July.
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at email@example.com with your version of question.