At June 30, 2022, the end of its most recent fiscal year, Shemeid Compl Debit Credit Cash $5,540 Accounts receivable 1,270 Supplies 730 Accounts payable Unearned service revenue $420 1,190 Owner's capital 5,930 $7,540 $7,540 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Sheffield conducted the following transactions during July 2022, and adjusts its accounts monthly. July 1 Purchased equipment, paying $4,000 cash and signing a 2-year note payable for $21,200. 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 Owner invested $53,000 cash in the company. 3 Paid $3,600 cash for a 12-month insurance policy effective July 1 3 Paid the first 2 (July and August 2022) months' rent for an annual lease of office space for $4,200 per month. Paid $4.000 for sunolies 6 Paid $4,000 for supplies. 10 10 13 14 16 18 20 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 $1,270 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 $1,190 in advance last month. All services relating to this payment are now completed. Paid $420 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 $12.700 cash in advance for future services to be performed. Paid semi-monthly salaries for $11,700. Performed services worth $29,700 on account and billed customers. 20 23 Received a bill for $2,300 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 $10,600 of revenue from the cash advance received July 16. 27 Received $15,900 cash from customers billed on July 20, Adjustment data: 1 Adjustment of prepaid insurance. 2 Adjustment of prepaid rent. Adjustment data: 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 3. Supplies used, $1,350. 4. Equipment depreciation, $525 per month. 5. Accrual of interest on note payable. 6. Salaries for the second half of July, $11,700, to be paid on August 1. 7. Estimated utilities expense for July, $850 (invoice will be received in August). Journalize and post adjusting entries for the month ending July 31. (Credit account titles are automatically indented wher amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry required, select "No Entry" for the account titles and enter O for the amounts.) lo. Date Account Titles and Explanation Debit Credit 1. July 31 Insurance Expense Prepaid Insurance 2. July 31 Rent Expense Prepaid Rent 3. July 31 Supplies Expense Supplies 4. July 31 Depreciation Expense 300 30 Interest Payable 6. July 31 Utilities Expense 7. July 31 Utilities Cash July 1 Bal. 5,540 July 1 4,000 July 21 53,000 July 3 3,600 July 10 1,270 July 3 8,400 July 16 12,700 July 6 4,000 July 27 15,900 July 14 420 July 18 11,700 July 31 Bal. 56,290 Accounts Receivable Accounts Receivable July 1 Bal. 1,270 July 10 1,270 July 20 29,700 July 27 15,900 July 31 Bal. 13,800 Prepaid Insurance July 3 3,600 July 31 300 July 1 bal. July 6 Supplies 730 4,000 Prepaid Rent July 3 8,400 Equipment July 1 25,200 July 31 Bal. 25,200 July 14 Accumulated Depreciation-Equipment Accounts Payable 420 July 1 Bal. July 20 Interest Payable 420 2,300 Salaries and Wages Payable Unearned Service Revenue July 13 1,190 July 1 Bal. 1,190 July 23 10,600 July 16 12,700 July 31 Bal. 2,100 Notes Payable July 1 21.200 July 31 Bal. 21,200 Owner's Capital July 1 Bal. 5,930 July 2 53,000 July 31 Bal. 58,930 Service Revenue July 18 Service Revenue July 13 1,190 July 20 29,700 July 23 10,600 Salaries and Wages Expense 11,700 Rent Expense July 20 Advertising Expense 2,300 Supplies Expense Utilities Expense Depreciation Expense Insurance Expense Insurance Expense Interest Expense