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). Prepare a trial balance at July 31. SHEFFIELD COMPUTER CONSULTANTS Trial Balance July 31, 2022 Debit Credit