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

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 $5,650 1,300 750 Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Retained earnings $430 1,210 3,900 2,160 $7,700 $7,700 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 2. 3 3 6 9 10 13 Purchased equipment, paying $4,800 cash and signing a 2-year note payable for $21,600. 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. Issued 21,600 shares of common stock for $54,000 cash. Paid $3,600 cash for a 12-month insurance policy effective July 1. Paid the first 2 (July and August 2017) months' rent for an annual lease of office space for $4,300 per month. Paid $4,100 for supplies. 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. Collected $1,300 cash on account from Milani Brothers. This client was billed in June when Sheffield performed the service. Performed services for Fitzgerald Enterprises. This client paid $1,210 in advance last month. All services relating to this payment are now completed. Paid $430 cash for a utility bill. This related to June utilities that were accrued at the end of June. Met with a new client, Thunder Bay Technologies. Received $13,000 cash in advance for future services to be performed. Paid semi-monthly salaries for $11,900. Performed services worth $30,200 on account and billed customers. Received a bill for $2,400 for advertising services received during July. The amount is not due until August 15. Performed the first phase of the project for Thunder Bay Technologies. Recognized $10,800 of revenue from the cash advance received July 16. Received $16,200 cash from customers billed on July 20. 14 16 18 20 20 23 27 Adjustment data: 1. 2. 3. 4. 5. Adjustment of prepaid insurance. Adjustment of prepaid rent. Supplies used, $1,350. Equipment depreciation, $550 per month. Accrual of interest on note payable. Salaries for the second half of July, $11,900, to be paid on August 1. Estimated utilities expense for July, $860 (invoice will be received in August). Income tax for July, $1,300, 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 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. (h) 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 titles 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.) Debit Credit Date Account Titles and Explanation July 31 (To close revenue account) July 31 (To close expense accounts) July 31 (To close net income to retained earnings) Cash 4,800 July 1 Bal. July 2 July 10 July 16 July 27 5,650 July 1 54,000 July 3 1,300 July 3 13,000 July 6 16,200 July 14 July 18 56,720 3,600 8,600 4,100 430 11,900 July 31 Bal. Accounts Receivable 1,300 July 1 Bal. July 20 July 31 Bal. 1,300 July 10 30,200 July 27 16,200 14,000 Prepaid Insurance 3,600 July 31 300 July 3 July 31 Bal. 3,300 Supplies 750 July 31 4,100 July 1 Bal. July 6 July 31 Bal. 1,350 3,500 Prepaid Rent 8,600 July 31 4,300 July 3 July 31 Bal. 4,300 Equipment 26,400 July 1 July 31 Bal. 26,400 Accumulated Depreciation Equipment July 31 July 31 Bal. 550 550 July 14 430 Accounts Payable 430 July 1 Bal July 20 July 31 July 31 Bal. 2,400 860 3,260 Interest Payable July 31 July 31 Bal. 108 108 Interest Payable July 31 July 31 Bal. 108 108 Salaries and Wages Payable July 31 July 31 Bal. 11,900 11,900 Income Taxes Payable July 31 July 31 Bal. 1,300 1,300 July 13 July 23 Unearned Service Revenue 1,210 July 1 Bal. 10,800 July 16 July 31 Bal. 1,210 13,000 2,200 Notes Payable July 1 July 31 Bal. 21,600 21,600 3,900 Common Stock July 1 bal. July 2 July 31 Bal. 54,000 57,900 Retained Earnings July 1 Bal. 2,160 Service Revenue July 13 1,210 July 20 30,200 July 23 10,800 Salaries and Wages Expense July 18 11,900 July 31 11,900 Rent Expense July 31 4,300 Advertising Expense July 20 2,400 Supplies Expense July 31 1,350 Utilities Expense July 31 860 Depreciation Expense July 31 550 Insurance Expense July 31 300 Interest Expense July 31 108 Income Tax Expense July 31 1,300 Income Summary