At June 30, 2017, the end of its most recent fiscal year, Ayayal Computer Consultants post-closing trial balance was as follows: Credit Debit $3,870 Cash Accounts receivable 890 Supplies 510 Accounts payable $300 Unearned service revenue 830 Common stock 2.700 Retained earnings 1.440 $5.270 $5,270 The company underwent a major expansion in July, New staff was hired and more financing was obtained. Ayayal 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 $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 Duly and August 2017) months' rent for an annual lease of office space for $3.000 per month 6 Paid $2,800 for supplies. Visited dient offices and agreed on the terms of a consulting project. Ayayai will bill the client, Connor Productions on the 20th of each month for services performed 10 Collected $890 cash on account from Milani Brothers. This client was billed in June when Ayayal performed the service Performed services for Fitzgerald Enterprises. This client paid $830 in advance last month. All services relating to this payment are now 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 58,900 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $8,100 20 Performed services worth $20.700 on account and billed customers. 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. 27 Received $11,100 cash from customers billed on July 20. Adjustment data: 1. Adjustment of prepaid insurance, 2. Adjustment of prepaid rent. 3. Supplies used. $950. 4. Equipment depreciation, $375 per month 5. Accrual of interest on note payable. 6. Salaries for the second half of July, $8,100, to be paid on August 1. 7. Estimated utilities expense for July $590 (invoice will be received in August). 8. Income tax for July $890, will be paid in August The chart of accounts for Ayayal 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 adjusting entries for the month ending July 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter for the amounts.) No. Date Account Titles and Explanation Debit Credit Cash July 1 Bal. 3,200 2,400 July 2 July 10 6,000 July 16 3,870 July 1 37,000 July 3 890 July 3 8,900 July 6 11,100 July 14 July 18 38,960 2.800 July 27 July 31 Bal. Accounts Receivable July 1 Bal. July 20 890 July 10 20,700 July 27 9,600 July 31 Bal. Prepaid Insuranc July 3 2,400 July 31 200 July 31 Bal. 2200 Supplies July 1 bal. 510 July 31 950 July 6 2,800 July 31 Bal : 2360 Prepaid Rent Prepaid Rent July 3 6,000 July 10 3000 July 31 Bal : 6000 3000 Equipment July 1 18,000 18,000 July 31 Bal Accumulated Depreciation-Equipment July 31 July 31 Bal. July 31 Bal. Accounts Payable 300 July 1 Bal. July 14 300 July 20 1.600 July 31 590 July 31 Bal. 2190 Interest Payable July 31 74 July 31 Bal. Salaries and Wages Payable July 31 Income Taxes Payable July 31 July 31 Bal. July 31 Bal Unearned Service Revenue July 13 830 July 1 Bal. 830 July 23 7.400 July 16 8.900 July 31 Bal. 1,500 Notes Payable July 1 14,800 July 31 Bal. 14,800 Common Stock July 1 Bal. 2,700 37,000 July 2 July 31 Bal. 39,700 Retained Earnings July 1 Bal 1,440 Service Revenue July 13 830 July 20 20,700 July 23 7,400 July 31 Bal. 28,930
