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 | | $5,540 | | |
| Accounts receivable | | 1,270 | | |
| Supplies | | 730 | | |
| Accounts payable | | | | $420 |
| Unearned service revenue | | | | 1,190 |
| Common stock | | | | 3,800 |
| Retained earnings | | | | 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.
| July | 1 | | 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% interest rate which is payable on the first day of each following month. |
| | 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 the first 2 (July and August 2017) months rent for an annual lease of office space for $4,200 per month. |
| | 6 | | Paid $4,000 for supplies. |
| | 9 | | 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. |
Adjustment data:
| 1. | | Adjustment of prepaid insurance. |
| 2. | | Adjustment of prepaid rent. |
| 3. | | Supplies used, $1,350. |
| 4. | | Equipment depreciation, $525 per month. |
| 5. | | 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. |
The chart of accounts for Sheffield Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated DepreciationEquipment, 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.
(c)
Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.)
| Cash |
| July 1 Bal. | 5,540 | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
| Accounts Receivable |
| July 1 Bal. | 1,270 | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
| Prepaid Insurance |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| Supplies |
| July 1 bal. | 730 | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
| Prepaid Rent |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| Equipment |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
| Accounts Payable |
| choose a transaction date | enter a debit amount | July 1 Bal. | 420 |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
| Unearned Service Revenue |
| choose a transaction date | enter a debit amount | July 1 Bal. | 1,190 |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
| Notes Payable |
| choose a transaction dateJ | enter a debit amount | choose a transaction date | enter a credit amount |
| choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
| Common Stock |
| choose a transaction date | enter a debit amount | July 1 Bal. | 3,800 |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose the end date of the accounting period | enter a debit balance | choose the end date of the accounting period | enter a credit balance |
| Retained Earnings |
| choose a transaction date | enter a debit amount | July 1 Bal. | 2,130 |
| Service Revenue |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit amount | choose a transaction date | enter a credit amount |
| choose a transaction date | enter a debit balance | Choose a transaction date | enter a credit balance |
| Salaries and Wages Expense |
| choose a transaction | enter a debit amount | choose a transaction | enter a credit amount |
| Advertising Expense |
| choose a transaction | enter a debit amount | choose a transaction | enter a credit amount |
