At June 30, 2022, the end of its most recent fiscal year, Sheffield Computer Consultants post-closing trial balance was as follows: Debit Credit Cash Accounts receivable $5.540 1.270 730 Supplies Accounts payable $420 1,190 Unearned service revenue Common stock 3,800 Retained earnings 2,130 $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 Issued 21.200 shares of common stock for $53.000 cash 3 Paid $3.600 cash for a 12-month insurance policy effective July 1 3 Paid the first 2 Ouly and August 2022) months' rent for an annual lease of office space for $4.200 per month 6 Paid $4,000 for supplies. 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 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 Show Timer 10 Collected $1,270 cash on account from Milani Brothers. This client was billed in June when Sheffield performed the service. 13 Performed services for Fitzgerald Enterprises. This client paid $1,190 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 $12,700 cash in advance for future services to be performed 18 Paid semi-monthly salaries for $11.700. 20 Performed services worth $29.700 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 $10,600 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. 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). 8. Income tax for July $1.270, will be paid in August. The chart of accounts for Sheffield 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 Dividends, Income Summary Service Revenue. Supplies Expense, Depreciation Expense Insurance Expense Salaries and Wages Expense Cash July 1 Bal. 5,540 July 1 4,000 July 2 53,000 July 3 3,600 July 10 8,400 July 16 4,000 July 27 1,270 July 3 12,700 Julyo 15,900 July 14 July 18 56,290 420 11,700 July 31 Bal. Accounts Receivable July 1 Bal. 1,270 July 20 1,270 July 10 29,700 July 27 13,800 15,900 July 31 Bal. Prepaid Insurance July 3 3,600 Prepaid Insurance July 3 3,600 Supplies July 1 bal. 730 July 6 4,000 Prepaid Rent July 3 8,400 Equipment July 1 25,200 25,200 July 31 Bal. Accumulated Depreciation-Equipment Accounts Payable July 14 420 July 1 Bal. July 20 Interest Payable Salaries and Wages Payable Salaries and Wages Payable Income Taxes Payable Unearned Service Revenue July 13 1.190 1,190 July 23 1,190 July 1 Bal. 10,600 July 16 July 31 Bal. 12,700 2,100 Notes Payable 21,200 July 31 Bal. 21,200 Common Stock Common Stock July 1 Bal. 3,800 July 2 53,000 July 31 Bal. 56,800 Retained Earnings July 1 Bal. 2,130 Service Revenue July 13 1,190 July 20 29,700 July 23 10,600 July 31 Bal. 41,490 Salaries and Wages Expense July 18 11,700 Salaries and Wages Expense July 18 11,700 Rent Expense Advertising Expense 2,300 Supplies Expense Utilities Expense Utilities Expense Depreciation Expense Insurance Expense Interest Expense Income Tax Expense List of Accounts Prepare an adjusted trial balance. SHEFFIELD COMPUTER CONSULTANTS Trial Balances Debit Credit List of Accounts
