At June 30, 2022, the end of its most recent fiscal year, Sarasota Computer Con Debit Credit Cash $5,440 Accounts receivable 1,250 Supplies 720 Accounts payable $420 Unearned service revenue 1,160 Common stock 3,700 Retained earnings 2,130 $7,410 $7,410 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Sarasota conducted the following transactions during July 2022, and adjusts its accounts monthly. July 1 Purchased equipment, paying $4,400 cash and signing a 2-year note payable for $20,800. 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 Issued 20,800 shares of common stock for $52,000 cash. 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. 6 Paid $4,000 for supplies. 9 Visited client offices and agreed on the terms of a consulting project. Sarasota 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 Sarasota performed the service. 13 Performed services for Fitzgerald Enterprises. This client paid $1,160 in advance last month. All services relating to this payment are now completed. 14 Paid $420 cash for a utility bill. This related to June utilities that were accrued at the end of June. 13 Performed services for Fitzgerald Enterprises. This client paid $1,160 in advance last month. All services relating to this payment are now completed. 14 Paid $420 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 $12,500 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $11,400. 20 Performed services worth $29,100 on account and billed customers. 20 Received a bill for $2,300 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 $10,400 of revenue from the cash advance received July 16. 27 Received $15,600 cash from customers billed on July 20. Adjustment data: 1. Adjustment of prepaid insurance. Adjustment data: 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 3. Supplies used, $1,300. 4. Equipment depreciation, $525 per month. 5. Accrual of interest on note payable. 6. Salaries for the second half of July, $11,400, to be paid on August 1. 7. Estimated utilities expense for July, $830 (invoice will be received in August). 8. Income tax for July, $1,250, will be paid in August. The chart of accounts for Sarasota Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Enter the July 1 balances in the ledger accounts. Cash July 1 Accounts Receivable Supplies July 1 Bal. Accounts Payable July 1 Prepaid Insurance July 3 3,600 July 3 300 July 31 Bal. 3300 v Supplies July 1 bal. 720 July 6 3420 July 6 4,000 July 31 Bal. 1300 Prepaid Rent July 3 8,400 July 3 4200 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 Ofor the amounts.) No. Date Account Titles and Explanation Debit Credit 1. July 1 Insurance Expense 300 Prepaid Insurance 2. July 2 Rent Expense 4200 Prepaid Rent Cash July 1 Bal. 5,440 July 1 4,400 July 2 52,000 July 3 3,600 July 10 1,250 July 3 8,400 July 16 12,500 July 6 4,000 July 27 15,600 July 14 420 July 18 11,400 July 31 Bal. 54,570 Prepare an income statement for July. SARASOTA COMPUTER CONSULTANTS Income Statement For the Month Ended July 31, 2022 Revenues Service Revenue Expenses $ Prepare a retained earning statement for July. SARASOTA COMPUTER CONSULTANTS Retained Earnings Statement For the Month Ended July 31, 2022 Retained earnings, July 1 Add : Net Income /(Loss)