Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At June 30, 2017, the end of its most recent fiscal year, Cheyenne Computer Consultants' post-closing trial balance was as follows: Credit Debit $4,290 980
At June 30, 2017, the end of its most recent fiscal year, Cheyenne Computer Consultants' post-closing trial balance was as follows: Credit Debit $4,290 980 570 Cash Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Retained earnings $330 920 3,000 1,590 $5,840 $5,840 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Cheyenne conducted the following transactions during July 2017, and adjusts its accounts monthly. July 1 2 3 3 6 9 10 Purchased equipment, paying $2,800 cash and signing a 2-year note payable for $16,400. 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. Issued 16,400 shares of common stock for $41,000 cash. Paid $3,000 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 $3,300 per month. Paid $3,100 for supplies. Visited client offices and agreed on the terms of a consulting project. Cheyenne will bill the client, Connor Productions, on the 20th of each month for services performed. Collected $980 cash on account from Milani Brothers. This client was billed in June when Cheyenne performed the service. Performed services for Fitzgerald Enterprises. This client paid $920 in advance last month. All services relating to this payment are now completed. Paid $330 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 $9,800 cash in advance for future services to be performed. Paid semi-monthly salaries for $9,000. Performed services worth $23,000 on account and billed customers. Received a bill for $1,800 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 $8,200 of revenue from the cash advance received July 16. Received $12,300 cash from customers billed on July 20. 13 14 16 18 20 20 23 27 Adjustment data: 1. 2. 3. 4. Adjustment of prepaid insurance. Adjustment of prepaid rent. Supplies used, $1,050. Equipment depreciation, $400 per month. Accrual of interest on note payable. Salaries for the second half of July, $9,000, to be paid on August 1. Estimated utilities expense for July, $660 (invoice will be received in August). Income tax for July, $980, will be paid in August. 5. 6. 7. 8. The chart of accounts for Cheyenne 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. Enter the July 1 balances in the ledger accounts. Cash Accounts Receivable + Supplies Accounts Payable Unearned Service Revenue F Common Stock Retained Earnings (b) 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 o for the amounts.) Date Account Titles and Explanation Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started