At June 30, 2017, the end of its most recent fiscal year, Blue Computer Consultants post-closing trial balance was as follows:

		Debit		Credit
Cash		$3,970
Accounts receivable		910
Supplies		520
Accounts payable				$300
Unearned service revenue				850
Common stock				2,700
Retained earnings				1,550
		$5,400		$5,400

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Blue conducted the following transactions during July 2017, and adjusts its accounts monthly.

July	1		Purchased equipment, paying $2,800 cash and signing a 2-year note payable for $15,200. 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 15,200 shares of common stock for $38,000 cash.
	3		Paid $3,000 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 $2,900 for supplies.
	9		Visited client offices and agreed on the terms of a consulting project. Blue will bill the client, Connor Productions, on the 20th of each month for services performed.
	10		Collected $910 cash on account from Milani Brothers. This client was billed in June when Blue performed the service.
	13		Performed services for Fitzgerald Enterprises. This client paid $850 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 $9,100 cash in advance for future services to be performed.
	18		Paid semi-monthly salaries for $8,400.
	20		Performed services worth $21,300 on account and billed customers.
	20		Received a bill for $1,700 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 $7,600 of revenue from the cash advance received July 16.
	27		Received $11,400 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, $8,400, to be paid on August 1.
7.		Estimated utilities expense for July, $610 (invoice will be received in August).
8.		Income tax for July, $910, will be paid in August.

The chart of accounts for Blue 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.

*(a)

	Your answer is correct.

Enter the July 1 balances in the ledger accounts.

Cash
July 1 Bal.	3970

Accounts Receivable
July 1 Bal.	910

Supplies
July 1 Bal.	520

Accounts Payable
		July 1 Bal.	300

Unearned Service Revenue
		July 1 Bal.	850

Common Stock
		July 1 Bal.	2700

Retained Earnings
		July 1 Bal.	1550

Attempts: 1 of 5 used

*(b)

	Your answer is correct.

Journalize the July transactions. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 1	Equipment	18000
	Cash		2800
	Notes Payable		15200
July 2	Cash	38000
	Common Stock		38000
July 3	Prepaid Insurance	3000
	Cash		3000
July 3	Prepaid Rent	6000
	Cash		6000
July 6	Supplies	2900
	Cash		2900
July 9	No Entry	0
	No Entry		0
July 10	Cash	910
	Accounts Receivable		910
July 13	Unearned Service Revenue	850
	Service Revenue		850
July 14	Accounts Payable	300
	Cash		300
July 16	Cash	9100
	Unearned Service Revenue		9100
July 18	Salaries and Wages Expense	8400
	Cash		8400
July 20	Accounts Receivable	21300
	Service Revenue		21300
July 20	Advertising Expense	1700
	Accounts Payable		1700
July 23	Unearned Service Revenue	7600
	Service Revenue		7600
July 27	Cash	11400
	Accounts Receivable		11400

Attempts: 3 of 5 used

*(c)

Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.)

Cash
July 1 Bal.	3,970

Accounts Receivable
July 1 Bal.	910

Prepaid Insurance

Supplies
July 1 bal.	520

Prepaid Rent

Equipment

Accounts Payable
		July 1 Bal.	300

Unearned Service Revenue
		July 1 Bal.	850

Notes Payable

Common Stock
		July 1 Bal.	2,700

Retained Earnings
		July 1 Bal.	1,550

Service Revenue

Salaries and Wages Expense

Advertising Expense