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 July 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 $8.900 cash in advance for future services to be performed. 18 Pald 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. Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.) AYAYAI COMPUTER CONSULTANTS Balance Sheet Assets Current Assets Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Total Current Assets Total Property. Plant, and Equipment Equipment Less : Accumulated Depreciation Equipment Total Property. Plant, and Equipment Total Assets Liabilities and Stockholders' Equity Current Liabilities Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Salaries and Wages Payable Unearned Service Revenue Interest Payable Rent Expense Total Current Liabilities Stockholders' Equity Common Stock Total Stockholders' Equity List of Accounts Attempts:0 of 5 used
