A General Journal Associate Level Material Appendix G Compre

A General Journalassociate Level Materialappendix Gcomprehensive Prob

Prepare journal entries, worksheet, account postings, financial statements, adjusting and closing entries, and a post-closing trial balance for Julie's Maid Cleaning Service, Inc., based on the specified transactions, adjustments, and account balances for July 2008.

Paper For Above instruction

Prepare the following accounting processes for Julie's Maid Cleaning Service, Inc. for the month ended July 31, 2008:

1. Journalize and post all July transactions using the provided template.
2. Prepare a 10-column worksheet including a trial balance, adjustments, and financial statements, verifying the totals.
3. Post all transactions to the general ledger accounts for the 18 specified accounts.
4. Prepare the financial statements: Income Statement, Retained Earnings Statement, and a classified Balance Sheet as of July 31, 2008.
5. Journalize and post adjusting entries and closing entries.
6. Prepare a post-closing trial balance as of July 31, 2008.

Follow standard accounting principles to ensure accurate documentation of all financial activities for the period. Use proper journal entry formatting, account numbering, and consistent application of accounting concepts.

Answer

Julie’s Maid Cleaning Service, Inc. experienced several financial transactions in July 2008, which required accurate recording and reporting through various accounting procedures. This comprehensive process begins with the initial journal entries for all transactions, advances through ledger postings, worksheet adjustments, financial statement preparation, and concludes with closing entries and final trial balance.

Journal Entries for July Transactions

Julie’s Maid Cleaning Service recorded multiple transactions during July, indicative of normal operational activities. The initial set of journal entries includes the issuance of common stock, purchase of equipment, receipt of cash for services, and payment of expenses, among others. For example, on July 1, the owner invested cash in exchange for common stock, which is recorded as:

Debit: Cash $x
Credit: Common Stock $x

Similarly, purchases like cleaning supplies and Prepaid Insurance are debited to their respective accounts, while related payments reduce cash. Service revenues earned are credited when services are provided, and associated accounts receivables are debited when appropriate.

These entries are systematically recorded in the general journal with corresponding references, such as the date and explanation, and then posted to individual ledger accounts. Accurate journal entries form the foundation of reliable financial reporting and ensure each transaction's clarity and auditability.

Worksheet Preparation and Adjustments

The worksheet facilitates the organization of accounting data to prepare financial statements. It includes a trial balance, adjustments, and updated balances. Adjustments such as depreciation of equipment and accruals of expenses are meticulously entered to reflect the true financial position at July 31, 2008. For instance, depreciation expense reduces net income and accumulates over time, necessitating an adjustment entry that debits depreciation expense and credits accumulated depreciation.

After incorporating adjustments, the worksheet's extension to net income calculation and balance sheet data ensures that financial statements accurately mirror the company's economic reality as of the reporting date.

Posting to Ledger Accounts

The account postings involve updating the general ledger with the summarized and adjusted data from the journal entries and worksheet. Each account—such as Cash, Accounts Receivable, Equipment, and Accounts Payable—is updated with debit and credit entries. Accurate posting maintains the integrity of individual account balances, which are essential for financial statement accuracy.

For example, the Equipment account is debited when purchased, and the accumulated depreciation account is credited during depreciation adjustments. This systematic posting creates a complete record of all account activity throughout the period.

Financial Statements

The preparation of the financial statements includes the Income Statement, Retained Earnings Statement, and the Balance Sheet. The Income Statement summarizes revenues and expenses, calculating net income, which flows into the Retained Earnings Statement. The Retained Earnings Statement begins with prior earnings, adds net income, and deducts dividends to determine ending retained earnings.

The Balance Sheet classifies assets into current and non-current, liabilities into current and long-term, and reports stockholders’ equity, providing a snapshot of the company's financial position at period-end. These statements depend heavily on accurate ledger balances and adjustments.

Adjusting and Closing Entries

Adjusting entries correct the accounts for accrued and deferred items. Examples include accruing salaries or recognizing depreciation. These entries are journalized in Journal J2 and posted accordingly.

Closing entries in Journal J3 transfer temporary account balances (revenues and expenses) to retained earnings. These entries zero out income statement accounts to prepare for the next accounting period and update retained earnings accordingly.

Post-Closing Trial Balance

The post-closing trial balance lists only permanent accounts after closing entries are posted. It verifies that total debits equal total credits, ensuring ledger accuracy and completeness for the new period.

Throughout this process, rigorous application of accounting standards and diligent record-keeping ensure the integrity, transparency, and compliance of the financial reporting for Julie’s Maid Cleaning Service, Inc.

References

• Beams, J. (2019). Advanced Accounting. Pearson.
• Wild, J. J., Shaw, K. W., & Chiappetta, M. (2021). Financial Accounting. McGraw-Hill Education.
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• Horngren, C. T., Sundem, G. L., Elliott, J. A., & Philbrick, D. (2018). Introduction to Financial Accounting. Pearson.
• Leonard, L. N. (2021). Accounting for Non-Accounting Students. Cengage Learning.
• Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory and Analysis. Wiley.
• Gibson, C. H. (2022). Financial Reporting & Analysis. South-Western College Pub.
• Fess, P., & Fess, P. (2017). Fundamentals of Financial Accounting. McGraw-Hill Education.
• Revsine, L., Collins, D., & Johnson, W. (2018). Financial Reporting & Analysis. Pearson.
• Peterson, P. P., & Reece, B. A. (2020). Financial Accounting. McGraw-Hill Education.