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 Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Retained earnings $5,540 1,270 730 $420 1,190 3,800 2,130 $7,540 $7,540 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. Purchased equipment, paying $ 4,000 cash and signing a 2-year note payable for $ 21,200 The equipment has a 4-year useful life. The note has a 6% nterest rate which s payable on the first day of each follow 2 Issued 21,200 shares of common stock for $53,000 cash 3 Paid $3,600 cash for a 12-month insurance policy effective July 1. 3 Paid thefirst 2 (July and August 2017) months rent for an annual lease of office space for $4,200 per month. 6 Paid $4000for supplies 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 $ 1,270 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 $1,190 in advance last month. All services relating to this payment are now completed. 14 Paid $ 420 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 $12,700 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $ 11,700. 20 Performed services worth $29,700 on account and billed customers. 20 Received a bill for $2,300 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 $ 10,600 of revenue from the cash advance received July 16. 27 Received $15,900 cash from customers billed on July 20. July 1 ng month Adjustment data: 1. Adjustment of prepaid insurance. 2Adjustment of prepaid rent. 3. Supplies used, $ 1.350. 4. Equipment depreciation, $525 per month. . Accrual of interest on note payable. 6. Salaries for the second half of July, $11,700, to be paid on August 1. 7. Estimated utilities expense for July, $ 850 (invoice will be received in August) 8 Income tax for July. $ 1.270, will be paid in August Enter the July 1 balances in the ledger accounts. Cash Accounts Receivable Supplies Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Date Account Titles and Explanation Debit Credit July 31 uly 31 uly 31 July 31 July 31 July 31 uly 31 uly 31 July 31 July 31 July 31 July 31 July 31 July 31 July 31 July 31
