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Adjustment data: 1. Adjustment of prepaid insurance. Adjustment of prepaid rent. Supplies used, $1,100. Equipment depreciation, $425 per month. 5. Accrual of interest on note
Adjustment data: 1. Adjustment of prepaid insurance. Adjustment of prepaid rent. Supplies used, $1,100. Equipment depreciation, $425 per month. 5. Accrual of interest on note payable. 6. Salaries for the second half of July, $9,500, to be paid on August 1. 7. Estimated utilities expense for July, $690 (invoice will be received in August). 8. Income tax for July, $1,030, will be paid in August. At June 30, 2017, the end of its most recent fiscal year, Grouper Computer Consultants' post-closing trial balance was as follows: Debit Credit Cash $4,500 Accounts receivable 1,030 Supplies 590 Accounts payable $340 Unearned service revenue 960 Common stock 3,100 Retained earnings 1,720 $6,120 $6,120 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Grouper conducted the following transactions during July 2017, and adjusts its accounts monthly. July 1 Purchased equipment, paying $3,200 cash and signing a 2-year note payable for $17,200. 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 17,200 shares of common stock for $43,000 cash. 3 Paid $3,000 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 $3,400 per month. July 1 Purchased equipment, paying $3,200 cash and signing a 2-year note payable for $17,200. 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 17,200 shares of common stock for $43,000 cash. 3 Paid $3,000 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 $3,400 per month. 6 Paid $3,300 for supplies. Visited client offices and agreed on the terms of a consulting project. Grouper will bill the client, Connor Productions, on the 20th of each month for services performed. 10 Collected $1,030 cash on account from Milani Brothers. This client was billed in June when Grouper performed the service. 13 Performed services for Fitzgerald Enterprises. This client paid $960 in advance last month. All services relating to this payment are now completed. 14 Paid $340 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 $10,300 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $9,500. 20 Performed services worth $24,100 on account and billed customers. 20 Received a bill for $1,900 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 $8,600 of revenue from the cash advance received July 16. 27 Received $12,900 cash from customers billed on July 20. 8. Cash July 1 Bal. 4,500 July 1 3,200 July 2 43,000 July 3 3,000 July 10 6,800 July 16 3,300 1,030 July 3 10,300 July 6 12,900 July 14 July 18 July 27 340 9,500 July 31 Bal. 45,590 Accounts Receivable July 1 Bal. 1,030 July 10 1,030 July 20 24,100 July 27 12,900 July 31 Bal. 11,200 Prepaid Insurance July 3 3,000 Supplies July 1 bal. 590 July 6 3,300 Prepaid Rent July 3 6,800 Accounts Receivable July 1 Bal. 1,030 July 10 1,030 July 20 24,100 July 27 12,900 July 31 Bal. 11,200 Prepaid Insurance July 3 3,000 Supplies July 1 bal. 590 July 6 3,300 Prepaid Rent July 3 6,800 Equipment July 1 20,400 July 31 Bal. 20,400 Accumulated Depreciation-Equipment Accounts Payable 340 July 1 Bal. July 14 340 July 20 1,900 Interest Payable Salaries and Wages Payable Income Taxes Payable Unearned Service Revenue July 13 960 July 1 Bal. 960 July 23 8,600 July 16 10,300 July 31 Bal. 1,700 Notes Payable July 1 17,200 July 31 Bal. 17,200 Common Stock July 1 Bal. 3,100
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