At June 30, 2017, the end of its most recent fiscal year, Swifty Computer Consultants' post-closing trial balance was as follows: Credit Debit $6,170 1,420 810 Cash Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Retained earnings $470 1,320 4,200 2,410 $8.400 $8.400 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Swifty conducted the following transactions during July 2017, and adjusts its accounts monthly. July 1 2. 3 3 6 9 10 13 Purchased equipment, paying $5,200 cash and signing a 2-year note payable for $23,600. 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 23,600 shares of common stock for $59,000 cash. Paid $4,200 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 $4,700 per month. Paid $4,500 for supplies. Visited client offices and agreed on the terms of a consulting project. Swifty will bill the client, Connor Productions, on the 20th of each month for services performed. Collected $1,420 cash on account from Milani Brothers. This client was billed in June when Swifty performed the service. Performed services for Fitzgerald Enterprises. This client paid $1,320 in advance last month. All services relating to this payment are now completed. Paid $470 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 $14,200 cash in advance for future services to be performed. Paid semi-monthly salaries for $13,000. Performed services worth $33,000 on account and billed customers. Received a bill for $2,600 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 $11,800 of revenue from the cash advance received July 16. Received $17,700 cash from customers billed on July 20. 14 16 18 20 20 23 27 Adjustment data: 1. 2. 3. 4. Adjustment of prepaid insurance. Adjustment of prepaid rent. Supplies used, $1,500 Equipment depreciation, $600 per month. Accrual of interest on note payable. Salaries for the second half of July, $13,000, to be paid on August 1. Estimated utilities expense for July, $940 (invoice will be received in August). Income tax for July, $1,420, will be paid in August. 5. 6. 7. 8. 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 Ofor the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.) Date Account Titles and Explanation Debit Credit July 31 (To close revenue account) July 31 (To close expense accounts) July 31 (To close net income to retained earnings) July 1 Bal. July 2 July 10 July 16 July 27 Cash 6,170 July 1 59,000 July 3 1,420 July 3 14,200 July 6 17,700 July 14 July 18 61,720 5,200 4,200 9,400 4,500 470 13,000 July 31 Bal. July 1 Bal. July 20 July 31 Bal Accounts Receivable 1,420 July 10 33,000 July 27 15,300 1,420 17,700 July 3 Prepaid Insurance 4,200 July 31 3.850 350 July 31 Bal. 1,500 July 1 Bal. July 6 July 31 Bal. Supplies 810 July 31 4,500 3,810 Prepaid Rent 9,400 July 31 4,700 July 3 July 31 Bal. 4.700 July 1 July 31 Bal. Equipment 28,800 28,800 Accumulated Depreciation-Equipment July 31 July 31 Bal. 600 600 July 14 470 Accounts Payable 470 July 1 Bal July 20 July 31 July 31 Bal. 2,600 940 3,540 Interest Payable July 31 July 31 Bal. 118 118 Salaries and Wages Payable July 31 July 31 Bal. 13,000 13,000 Income Taxes Payable July 31 July 31 Bal. 1,420 1,420 July 13 July 23 Unearned Service Revenue 1.320 July 1 Bal. 11.800 July 16 July 31 Bal. 1,320 14,200 2,400 Notes Payable July 1 July 31 Bal. 23.600 23,600 Common Stock July 1 bal. July 2 July 31 Bal. 4,200 59.000 63,200 Retained Earnings July 1 Bal. 2,410 > July 13 1,320 July 20 33,000 July 23 11,800 Salaries and Wages Expense July 18 13.000 July 31 13,000 Rent Expense July 31 4,700 Advertising Expense 2,600 July 20 Supplies Expense July 31 1,500 Utilities Expense July 31 940 V Depreciation Expense 600 July 31 V Insurance Expense July 31 350 Interest Expense 118 July 31 Income Tax Expense 1.420 July 31 Insurance Expense July 31 350 Interest Expense July 31 118 Income Tax Expense July 31 1,420 Income Summary Prepare a post-closing trial balance at July 31. SWIFTY COMPUTER CONSULTANTS Post-Closing Trial Balance Debit Credit $ $ $