Accounting Cycle Review 4-4 (Part Level Submission)

At June 30, 2017, the end of its most recent fiscal year, Sheffield Computer Consultants post-closing trial balance was as follows:

		Debit		Credit
Cash		$5,650
Accounts receivable		1,300
Supplies		750
Accounts payable				$430
Unearned service revenue				1,210
Common stock				3,900
Retained earnings				2,160
		$7,700		$7,700

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Sheffield conducted the following transactions during July 2017, and adjusts its accounts monthly.

July	1		Purchased equipment, paying $4,800 cash and signing a 2-year note payable for $21,600. The equipment has a 4-year useful life. The note has a 6% interest rate which is payable on the first day of each following month.
	2		Issued 21,600 shares of common stock for $54,000 cash.
	3		Paid $3,600 cash for a 12-month insurance policy effective July 1.
	3		Paid the first 2 (July and August 2017) months rent for an annual lease of office space for $4,300 per month.
	6		Paid $4,100 for supplies.
	9		Visited client offices and agreed on the terms of a consulting project. Sheffield will bill the client, Connor Productions, on the 20th of each month for services performed.
	10		Collected $1,300 cash on account from Milani Brothers. This client was billed in June when Sheffield performed the service.
	13		Performed services for Fitzgerald Enterprises. This client paid $1,210 in advance last month. All services relating to this payment are now completed.
	14		Paid $430 cash for a utility bill. This related to June utilities that were accrued at the end of June.
	16		Met with a new client, Thunder Bay Technologies. Received $13,000 cash in advance for future services to be performed.
	18		Paid semi-monthly salaries for $11,900.
	20		Performed services worth $30,200 on account and billed customers.
	20		Received a bill for $2,400 for advertising services received during July. The amount is not due until August 15.
	23		Performed the first phase of the project for Thunder Bay Technologies. Recognized $10,800 of revenue from the cash advance received July 16.
	27		Received $16,200 cash from customers billed on July 20.

Adjustment data:

1.		Adjustment of prepaid insurance.
2.		Adjustment of prepaid rent.
3.		Supplies used, $1,350.
4.		Equipment depreciation, $550 per month.
5.		Accrual of interest on note payable.
6.		Salaries for the second half of July, $11,900, to be paid on August 1.
7.		Estimated utilities expense for July, $860 (invoice will be received in August).
8.		Income tax for July, $1,300, will be paid in August.

The chart of accounts for Sheffield Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated DepreciationEquipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense.

Prepare a trial balance at July 31.

SHEFFIELD COMPUTER CONSULTANTS Trial Balances July 31, 2017For the Month Ended July 31, 2017For the Year Ended July 31, 2017
	Debit	Credit
	$	$