At June 30, 2017, the end of its most recent fiscal year Green River Computer Consultants post-closing trial balance was as follows: Credit Cash Debit $5.230 1.200 Accounts receivable Supplies 690 Accounts payable $400 1.120 Unearned service revenue Common stock 3.600 Retained earnings 2.000 $7.120 57,120 The company underwent a major expansion in July, New staff was hired and more financing was obtained, Green River conducted the following transactions during July 2017, and adjusts its accounts monthly July 1Purchased equipment paying $4.000 cash and signing a 2-year note payable for $20.000. The equipment has a 4-year useful life. The note hasa 6% interest rate which is payable on the first day of each following month 2. Issued 20,000 shares of common stock for $50,000 cash 3 Paid $3.600 cash for a 12-month insurance policy effective July 1. 3 Paid the first 2 Ouly and August 2017) months' rent for an annual lease of office space for $4000 per month 6 Paid $3.800 for supplies Visited dient offices and agreed on the terms of a consulting project. Green River will bill the client. Connor Productions on the 20th of each month for services performed 10 Collected $1.200 cash on account from Milani Brothers. This client was biled in June when Green River performed the service Performed services for Enterprises. This dient paid $1.120 in advance last month All services relating to this payment are now completed 14 Paid $400 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 $12.000 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $11,000 20 Performed services worth $28.000 on account and billed customers. 20 Received a bill for $2.200 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 $10,000 of revenue from the cash advance received July 16. 27 Received $15,000 cash from customers billed on July 20 Adjustment data: 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 3. Supplies used, $1.250. 4. Equipment depreciation, $500 per month. 5. Accrual of interest on note payable. 6. Salaries for the second half of July, $11,000, to be paid on August 1 7. Estimated utilities expense for July, $800 (invoice will be received in August). 8. Income tax for July $1,200, will be paid in August The chart of accounts for Green River 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 an income statement for July. GREEN RIVER COMPUTER CONSULTANTS Income Statement Prepare a retained earning statement for July. GREEN RIVER COMPUTER CONSULTANTS Retained Earnings Statement eTextbook and Media List of Accounts Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.) GREEN RIVER COMPUTER CONSULTANTS Balance Sheet Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity 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 tities and enter o for the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.) Date Account Titles and Explanation Debit Credit July 31 (To close revenue account) July 31 (To dose expense accounts) July 31 (To close net income to retained earnings)
