At June 30, 2022, the end of its most recent fiscal year, Riverbed Computer Consultants post-closing trial balance was as follows:

		Debit		Credit
Cash		$4,780
Accounts receivable		1,250
Supplies		640
Accounts payable				$380
Unearned service revenue				1,040
Common stock				3,940
Retained earnings				1,310
		$6,670		$6,670

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Riverbed 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 $20,000. 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		Issued 21,000 shares of common stock for $52,500 cash.
	3		Paid $3,240 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 $4,100 per month.
	6		Paid $3,400 for supplies.
	9		Visited client offices and agreed on the terms of a consulting project. Riverbed will bill the client, Connor Productions, on the 20th of each month for services performed.
	10		Collected $1,250 cash on account from Milani Brothers. This client was billed in June when Riverbed performed the service.
	13		Performed services for Fitzgerald Enterprises. This client paid $1,040 in advance last month. All services relating to this payment are now completed.
	14		Paid $380 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 $12,300 cash in advance for future services to be performed.
	18		Paid semi-monthly salaries for $11,800.
	20		Performed services worth $26,200 on account and billed customers.
	20		Received a bill for $2,200 for advertising services received during July. The amount is not due until August 15.
	23		Performed the first phase of the project for Thunder Bay Technologies. Recognized $10,100 of revenue from the cash advance received July 16.
	27		Received $14,700 cash from customers billed on July 20.

The chart of accounts for Riverbed Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated DepreciationEquipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, and Utilities Expense.

Adjustment data:

1.		Adjustment of prepaid insurance.
2.		Adjustment of prepaid rent.
3.		Supplies used, $1,180.
4.		Equipment depreciation, $500 per month.
5.		Accrual of interest on note payable. (Hint: Use the formula from Illustration 3.17 to compute interest.)
6.		Salaries for the second half of July, $11,800, to be paid on August 1.
7.		Estimated utilities expense for July, $700 (invoice will be received in August).
8.		Income tax for July, $1,300, will be paid in August. (Hint: Use the accounts Income Tax Expense and Income Taxes Payable.)

1. Journalize the adjusting entries for the month ending July 31.

2. Post the adjusting entries for the month ending July 31.

3. Prepare an adjusted trial balance.

4. Prepare an income statement for July.

5.Prepare a retained earning statement for July.

6. Prepare a classified balance sheet at July 31.

7. Journalize the closing entries.

8. Post the closing entries and complete the closing process

9. Prepare a post-closing trial balance at July 31.