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At June 30, 2022, the end of its most recent fiscal year, Ayayal Computer Consultants' post-closing trial balance was as follows: Debit Credit Cash $3,870
At June 30, 2022, the end of its most recent fiscal year, Ayayal Computer Consultants' post-closing trial balance was as follows: Debit Credit Cash $3,870 Accounts receivable 890 Supplies 510 Accounts payable Unearned service revenue Owner's capital $300 830 4,140 $5.270 $5,270 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Ayayal conducted the following transactions during July 2022, and adjusts its accounts monthly. July 1 Purchased equipment, paying $3,200 cash and signing a 2-year note payable for $14,800. 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 $37,000 cash in the company. 3 Paid $2,400 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 $3,000 per month, 6 Paid $2.800 for supplies. 9 10 10 13 14 Visited client offices and agreed on the terms of a consulting project. Avayai will bill the client, Connor Productions, on the 20th of each month for services performed. Collected $890 cash on account from Milani Brothers. This client was billed in June when Ayayai performed the service. Performed services for Fitzgerald Enterprises. This client paid $830 in advance last month, All services relating to this payment are now completed. Paid $300 cash for a utility bill. This related to June utilities that were accrued at the end of June. 14 Paid $300 cash for a utility bill. This related to June utilities that were accrued at the end of June. 16 Met with a new client, Thunder Bay Technologies. Received $8,900 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $8,100. 201 Performed services worth $20,700 on account and billed customers 20 23 27 Received a bill for $1,600 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 $7,400 of revenue from the cash advance received July 16. Received $11,100 cash from customers billed on July 20. Adjustment data: 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 3. Supplies used, $950. 4. Equipment depreciation, $375 per month. 5. Accrual of interest on note payable. 6. Salaries for the second half of July. $8.100, to be paid on August 1. 7. Estimated utilities expense for July, $590 (invoice will be received in August). Enter the July 1 balances in the ledger accounts. (Post entries in the order displayed in the problem statement.) Cash Accounts Receivable Question 3 of 3 Supplies Accounts Payable Unearned Service Revenue Owner's Capital -730 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 Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.) July 1 Bal. > > July 1 Bal. July 1 bal. Cash 3,870 V Accounts Receivable: 890 Prepaid Insurance Supplies 510 July 1 bal. > > Supplies 510 Prepaid Rent Equipment Accounts Payable July 1 Bal. Unearned Service Revenue 300 July 1 Bal. 830 Notes Payable Owner's Capital July 1 Bal. Service Revenue Salaries and Wages Expense Advertising Expense 4.140 Prepare a trial balance at July 31. AYAYAI COMPUTER CONSULTANTS Trial Balance $ Debit Credit Journalize and post adjusting entries for the month ending July 31. (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) No. Date Account Titles and Explanation 1 July 31 2. July 31 3. July 31 4. July 31 5. July 31 6. July 31 7. July 31 Debit Credit
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