At June 30, 2017, the end of its most recent fiscal year, Ayayai Computer Consultants' post-closing trial balance was as follows: Debit Credit Cash $3,870 Accounts receivable 890 Supplies 510 Accounts payable $300 Unearned service revenue 830 Common stock 2,700 Retained earnings 1440 $5,270 $5.270 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Ayayai conducted the following transactions during July 2017, and adjusts its accounts monthly. July 1 Purchased equipment, paying $3,200 cash and signing a2-year note payable for $14,800. 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 14,800 shares of common stock for $37.000 cash. 3 Paid $2,400 cash for a 12-month insurance policy effective July 1 3 Paid the first 2 (UJuly and August 2017) months rent for an annual lease of office space for $3000 per month 6 Paid $2,800 for supplies Visited dlient offices and agreed on the terms of a consulting project. Ayayai will bill the client, Connor Productions, on the 20th of each month 9 for services performed. 10 Collected $890 cash on account from Milani Brothers. This client was billed in June when Ayayai performed the service. Performed services for Fitzgerald Enterprises. This client paid $830 in advance last month. All services relating to this payment are now 13 completed. 14 Paid $300 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 $8,900 cash in advance for future services to be performed. Paid semi-monthly salaries for $8,100 Performed services worth $20,700 on account and billed customers. 20 18 20 Received a bill for $1.600 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 $7,400 of revenue from the cash advance received July 16. Received $11.100 cash from customers billed on July 20. 27 Adjustment data: 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 3. Supplies used, $950. Equipment depreciation, $375 per month. 4. 5. Accrual of interest on note payable. Salaries for the second half of July, $8,100, to be paid on August 1 Estimated utilities expense for July, $590 (invoice will be received in August). Income tax for July, $890, will be paid in August 6. 7. 8. The chart of accounts for Ayayai Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, 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 Journalize and post closing entries and complete the closing process. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.) Credit Debit Account Titles and Explanation Date July 31 (To close revenue account) July 31 (To close expense accounts) July 31 (To close net income to retained earnings) Retained Earnings July 1 Bal. 1440 Service Revenue July 13 830 July 20 20,700 July 23 7400 Salaries and Wages Expense July 18 8,100 July 31 8,100 Rent Expense July 31 3,000 Advertising Expense July 20 1,600 Supplies Expense 950 July 31 Utilities Expense 590 July 31 Depreciation Expense 375 July 31 Insurance Expense 200 July 31 Interest Expense 74 July 31 Income Tax Expense 890 July 31 Income Summary List of Accounts Attempts: 0 of 5 used Submit Answer Save for Later