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At June 30, 2017, the end of its most recent fiscal year, Culver Computer Consultants post-closing trial balance was as follows: Debit Credit Cash $5,860

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

Debit

Credit

Cash

$5,860

Accounts receivable

1,340

Supplies

770

Accounts payable

$450

Unearned service revenue

1,250

Common stock

4,000

Retained earnings

2,270

$7,970

$7,970

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Culver 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 $22,400. 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 22,400 shares of common stock for $56,000 cash.

3

Paid $4,200 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 $4,500 per month.

6

Paid $4,300 for supplies.

9

Visited client offices and agreed on the terms of a consulting project. Culver will bill the client, Connor Productions, on the 20th of each month for services performed.

10

Collected $1,340 cash on account from Milani Brothers. This client was billed in June when Culver performed the service.

13

Performed services for Fitzgerald Enterprises. This client paid $1,250 in advance last month. All services relating to this payment are now completed.

14

Paid $450 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 $13,400 cash in advance for future services to be performed.

18

Paid semi-monthly salaries for $12,300.

20

Performed services worth $31,400 on account and billed customers.

20

Received a bill for $2,500 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 $11,200 of revenue from the cash advance received July 16.

27

Received $16,800 cash from customers billed on July 20.

Adjustment data:

1.

Adjustment of prepaid insurance.

2.

Adjustment of prepaid rent.

3.

Supplies used, $1,400.

4.

Equipment depreciation, $550 per month.

5.

Accrual of interest on note payable.

6.

Salaries for the second half of July, $12,300, to be paid on August 1.

7.

Estimated utilities expense for July, $900 (invoice will be received in August).

8.

Income tax for July, $1,340, will be paid in August

Enter the July 1 balances in the ledger accounts

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