At June 30, 2015, the end of its most recent fiscal year, Red River Computer Consultants Ltd.'s post-closing trial balance was as follows:

	Debit	Cash
Cash	$5,230
Accounts Recievable	1,200
Supplies	690
Accounts Payable		$400
Unearned Revenue		1,120
Common Shares		3,600
Retained Earnings		2,000
	$7,120	$7,120

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Red River conducted the following transactions during July 2015, and adjusts its accounts monthly.

July 2	Issued $50,000 of common shares for cash.
3	Purchased liability insurance coverage for a year, $3,600.
3	Paid the first two (July and August 2015) months' rent for an annual lease of office space for $4,000 per month. (Hint: Use the Prepaid Rent account.)
6	Purchased $3,800 of supplies for cash.
7	Purchased equipment, paying $4,000 cash and signing a two-year bank loan for $20,000. The equipment has a four-year useful life. The bank loan has a 6% interest rate which is payable on the first day of each following month.
9	Visited client offices and agreed on the terms of a consulting project. Red River will invoice the client, Connor Productions, on the 20th of each month for work performed.
10	Collected $1,200 on account from Milani Brothers Ltd. This client was invoiced in June when the service was provided to them.
13	Completed services for Fitzgerald Enterprises. This client paid $1,120 in advance last month. All services relating to this payment are now completed. (Hint: Use the Fees Earned account.)
14	Paid a utility bill of $400. This related to June utilities that were accrued at the end of June.
16	Met with a new client, Thunder Bay Technologies. Received $12,000 cash in advance for future work to be performed.
18	Paid semi-monthly salaries for $11,000.
20	Invoiced Connor Productions for $28,000 of consulting fees provided on account. (Hint: Use the Fees Earned account.)
20	Received an invoice for legal advice, $2,200. The amount is not due until August 15. (Hint: Use the Professional Fees Expense account.)
23	Completed the first phase of the project for Thunder Bay Technologies. Recognized $10,000 of revenue from the cash advance previously received (see July 16 transaction).
27	Received $15,000 cash from Connor Productions in partial payment of the invoice issued on July 20.
31	Prepared adjusting entries for the following:

- Expiry of insurance coverage (see July 3 transaction)

- Adjustment of prepaid rent (see July 3 transaction)

- Supplies used, $1,250 (see July 6 transaction)

- Equipment depreciation (see July 7 transaction)

- Accrual of interest on bank loan (see July 7 transaction)

- Salaries for the second half of July, $11,000, to be paid on August 1

- Estimated utilities expense for July, $800 (invoice to be received in August)

- Income tax for July, $1,200, to be paid in August

(a)	Record the above transactions and adjusting journal entries.

(b)	Prepare T accounts and post the general and adjusting journal entries.