At July 1, 2020, the following were the account balances (Beginning Balances) of Riot Games.

Debit Credit

Cash. 5000

Accounts Receivable 1350

Supplies 850

Accounts Payable 450

Unearned Service Revenue 1150

Share Capital-Ordinary 4000

Retained Earnings 1600

$7200 $7200

The company underwent a major expansion in July. New Staff was hired and more financing was obtained. Riot Games conducted the following transactions during July 2020 and adjust its accounts monthly.

July 1. Purchased equipment $24,000. Riot Games paid $4,000 with cash and $20,000 with a 2-year note payable. The note has 6% annual interest rate which is payable on the first day of each following month

July 2. Shareholder invested $60,000 cash in the company in exchange for ordinary shares

July 3. Paid $4,200 cash for 12-month insurance policy effective July 1.

July 3. Paid the first 2(July and August 2020) months rent for the office rent for $3,000 per month

July 6. Paid $4,300 cash for supplies July 9. Visited client offices and made a contract on terms of gaming consulting project total of $10,000. Riot Games will bill the client, Kakao, on the 20th of each month (Starts from Aug.) for services performed.

July 10. Collected $1,300 cash on account from the client. This client was billed in June when Riot Games completely performed the services.

July 13. The client, Google, paid $1,120 cash in advance for the future consulting services to be performed

July 14. Paid $400 cash for the utility bill that was paid on account in June.

July 18. Paid semi-monthly salaries for $11,500 in cash

July 20. Performed Services worth $31,000 on account and billed customers

July 20. Received a bill for $2,100 for advertising services from LCK Advertising company. The amount is not due until Aug. 15

Jul 23. Performed first phase of the consulting service for Google. Recognized $350 of revenue from the cash received in advance Jul. 13.

Jul 27. Received $13,000 cash from customers billed on Jul.20

Adjustment Data:

1. Adjustment of prepaid insurance (1/12 of the insurance expired)

2. Adjustment of prepaid rent

3. Supplies used $2,000

4. Depreciation for equipment, $500 per month

5. Accrual of interest on note payable (See Jul.1. Note Payable with 6% annual interest rate)

6. Salaries for the second half of July. $10,000, to be paid on Aug 1.

7. Estimated Utilities expense for July, $700 (will be paid in Aug).

The Chart of Accounts for Riot Games contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Note Payable, Interest Payable, Salaries and Wages Payable, Unearned Service Revenue, Share Capital-Ordinary, Retained Earnings, Income Summary, Service Revenue, Supplies expense, Depreciation expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Interest Expense, Rent Expense, and Utilities Expense.

Problem: Journalize and post-closing entries and complete the closing process.

Thank you~^^