For the past several years, Derrick Epstein has operated a part-time consulting business from his home. As of June 1, 2008, Derrick decided to move to rented quarters and to operate the business as a professional corporation, which is to be known as Luminary Consulting, P.C., on a full-time basis. Luminary Consulting entered into the following transactions during June:

{Instructions}
1. Journalize each transaction in a two-column journal, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of June, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a. Insurance expired during June is \(\$ 175\).

b. Supplies on hand on June 30 are \(\$ 2,000\).

c. Depreciation of office equipment for June is \(\$ 500\).

d. Accrued receptionist salary on June 30 is \(\$ 120\).

e. Rent expired during June is \(\$ 1,500\).

f. Unearned fees on June 30 are \(\$ 1,875\).
5. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. (Income Summary is account \#34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.objs. 2,3

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June 1. The following assets were received from Derrick Epstein in exchange for capital stock: cash, $26,200; accounts receivable, $6,000; supplies, $2,800; and office equipment, $25,000. There were no liabilities received. 1. Paid three months' rent on a lease rental contract, $5,250. 2. Paid the premiums on property and casualty insurance policies, $2,100. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $2,700. 5. Purchased additional office equipment on account from Office Station Co., $5,000. 6. Received cash from clients on account, $3,000. 10. Paid cash for a newspaper advertisement, $200. 12. Paid Office Station Co. for part of the debt incurred on June 5, $1,000. 12. Recorded services provided on account for the period June 1-12, $5,100. 14. Paid part-time receptionist for two weeks' salary, $800. 17. Recorded cash from cash clients for fees earned during the period June 1-16, $3,500.