Nile Company had the following trial balance at June 30, 2021 (its year end):

During the month of July, the following selected transactions took place:

July 2 Paid $750 cash for rent for July, August, and September.

10 Purchased $200 of supplies for cash.

14 Collected the full balance of accounts receivable.

20 Received $700 cash from a customer for services to be provided in August.

25 Provided $1,300 of services for a customer and immediately collected cash.

Additional information:

1. At July 31, the company had provided $800 of services for a customer that it had not billed or recorded.

2. Supplies on hand at July 31 were $800.

3. The equipment has a six-year useful life.

4. As at July 31, the company had performed services of $900 that had been paid in advance and was recorded as unearned revenue.

Instructions

a. Record the July transactions.

b. Prepare monthly adjusting entries at July 31.

Transcribed Image Text:

Debit Credit Cash $ 5,840 Accounts receivable 850 Supplies Equipment Accumulated depreciation-equipment Unearned revenue 1,100 9,360 $ 3,900 1,500 R. Nile, capital 11,750 Totals $17,150 $17,150