At June 30, 2022. the end of its most recent fiscal year, Indigo Computer Consultants' post-closing trial balance was as follows: Debit Credit Cash $6,070 Accounts receivable 1.390 Supplies 800 Accounts payable $460 Unearned service revenue 1,300 Common stock 4,200 Retained earnings 2,300 $8,260 $8,260 The company underwent a major expansion in goly. New staff was hired and more financing was obtained Indigo conducted the following transactions during July 2022, and adjusts its accounts monthly The company underwent a major expansion in July. New staff was hired and more financing was obtained. Indigo conducted the following transactions during July 2022, and adjusts its accounts monthly 2 3 July 1 Purchased equipment, paying $4,400 cash and signing a 2-year note payable for $23,200. 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. Issued 23,200 shares of common stock for $58.000 cash. Paid $4,200 cash for a 12-month insurance policy effective July 1. Paid the first 2 (July and August 2022) months' rent for an annual lease of office space for $4,600 per month, Paid $4,400 for supplies Visited client offices and agreed on the terms of a consulting project. Indigo will bill the client Connor Productions, on the 20th of each month for services performed Collected $1,390 cash on account from Milan Brothers. This client was billed in June when Indigo performed the 3 6 9 10 service 13 Performed services for Fitzgerald Enterprises. This client paid $1 300 in advance last month. All services relating to this payment are now completed. Paid $460 cash for a utility bill. This related to June utilities that were accrued at the end of June 14 14 Paid $460 cash for a utility bill. This related to June utilities that were accrued at the end of June. 16 18 20 Met with a new client, Thunder Bay Technologies. Received $13,900 cash in advance for future services to be performed. Paid semi-monthly salaries for $12,800. Performed services worth $32,500 on account and billed customers. Received a bill for $2,600 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 $11,600 of revenue from the cash advance received July 16. Received $17,400 cash from customers billed on July 20. 20 23 27 Adjustment data: 1 Adjustment of prepaid insurance. 2 Adjustment of prepaid rent. 3 Supplies used, $1.450, 4 Equipment depreciation 5575 per month 1 2. 3. 4. Adjustment of prepaid insurance, Adjustment of prepaid rent. Supplies used, $1,450 Equipment depreciation $575 per month Accrual of interest on note payable. Salaries for the second half of July $12.800, to be paid on August 1. Estimated utilities expense for July, 5930 (invoice will be received in August). Income tax for July, $1,390, will be paid in Augusti 5. 6. 7. 8 The chart of accounts for indigo 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, Uneamed Service Ravenue. Common Stock, Retained Earnings, Dividends. Income Summary, Service Revenue, Supplies Expense, Depreciation Expense. Insurance Expense Salaries and Wages Expense Advertising Expense, Income Tax Expense Interest Expense Rent Experise Supplies Expense, and Utilities Expenses Enter the July 1 balances in the ledger accounts. Cash Accounts Receivable Supplies Accounts Payable Unearned Service Revenue Unearned Service Revenue Common Stock Retained Earnings Joumalize the Jolytransactions. (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 for the amounts) Debit Account Titles and Explanation Date Credit Post to the ledger accounts. (Post entries in the order of Journal entries presented in the previous part.) Cash July 1 Bal. 6,070 > Accounts Receivable Accounts Receivable July 1 Bal. 1,390 Prepaid Insurance Supplies July 1 bal. 800 -/6 Question 2 of 2 INDIGO COMPUTER CONSULTANTS Trial Balances 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 for the amounts.) Date Account Titles and Explanation Debit Credit Prepaid Insurance July 3 4,200 Supplies July 1 bal. 800 July 6 4.400 Prepaid Rent July 3 9.200 Prepare an adjusted trial balance. INDIGO COMPUTER CONSULTANTS Trial Balances Debit Credit Prepare an income statement for July. INDIGO COMPUTER CONSULTANTS Income Statement Prepare a retained earning statement for July. INDIGO COMPUTER CONSULTANTS Retained Earnings Statement $ Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity) INDIGO COMPUTER CONSULTANTS Balance Sheet Assets Journalize and post closing entries and complete the closing process. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount) Date Account Titles and Explanation Debit Credit July 31 (To close revenue account) July 31 Prepare a post-closing trial balance at July 31. INDIGO COMPUTER CONSULTANTS Post-Closing Trial Balance Debit Credit $