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Lee Chang opened Lee's Window Washing on July 1, 2014. In July, the following transactions were completed:

July1 Lee invested $20,000 cash in the business. 1 Purchased a used truck for $25,000, paying $5,000 cash and signing a note payable for the balance. 3 Purchased supplies for $2,100 on account. 5 Paid $1,800 on a one-year insurance policy, effective July 1. 12 Billed customers $4,500 for cleaning services. 18 Paid $1,400 of amount owed on supplies. 20 Paid $2,000 for employee salaries. 21 Collected $3,400 from customers billed on July 12. 25 Billed customers $9,000 for cleaning services. 31 Paid $550 for fuel for the month on the truck. 31 Withdrew $1,600 cash for personal use.

Instructions

	(a)	Journalize and post the July transactions.
	(b)	Prepare a trial balance at July 31.

	(c)	Journalize and post the following adjustments: 1. Earned but unbilled fees at July 31 was $1,500. 2. The truck has an estimated useful life of four years. 3. One-twelfth of the insurance expired. 4. An inventory count shows $700 of supplies on hand at July 31. 5. Accrued but unpaid employee salaries were $800. 6. The note payable has a 5.5% annual interest rate.
	(d)	Prepare an adjusted trial balance.

	(e)	Prepare the income statement and statement of owner's equity for July, and a classified balance sheet at July 31, 2014. Of the note payable, $5,000 must be paid by July 1, 2015.
	(f)	Journalize and post the closing entries.

(g)

Prepare a post-closing trial balance at July 31.

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