At June 30, 2022, the end of its most recent fiscal year, Pronghorn Computer Consultants post-closing trial balance was as follows: Debit Credit $4,840 1.190 640 Cash Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Retained earnings $360 1,140 3,290 1,880 $6,670 $6,670 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Pronghorn conducted the following transactions during July 2022, and adjusts its accounts monthly July 1 2 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 Issued 18,000 shares of common stock for $45,000 cash. Paid $3,960 cash for a 12-month insurance policy effective July 1. Paid the first 2 Uuly and August 2022) months' rent for an annual lease of office space for $3,900 per month. Paid $3.400 for supplies. 3 3 6 3 6 9 10 13 14 Paid the first 2 (July and August 2022) months rent for an annual lease of office space for $3,900 per month. Paid $3,400 for supplies. Visited client offices and agreed on the terms of a consulting project. Pronghorn will bill the client, Connor Productions, on the 20th of each month for services performed Collected $1.190 cash on account from Milani Brothers. This client was billed in June when Pronghorn performed the service. Performed services for Fitzgerald Enterprises. This client paid $1,140 in advance last month. All services relating to this payment are now completed Paid $360 cash for a utility bill. This related to June utilities that were accrued at the end of June. Met with a new client, Thunder Bay Technologies. Received $13,200 cash in advance for future services to be performed Paid semi-monthly salaries for $10,300 Performed services worth $30,400 on account and billed customers. Received a bill for $2,000 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 $10,300 of revenue from the cash advance received July 16. Received $14,600 cash from customers billed on July 20. 16 18 20 20 23 27 The chart of accounts for Pronghorn 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, 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. (a) Enter the July 1 balances in the ledger accounts. Cash Accounts Receivable Supplies Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Journalize the July transactions (Credit account titles are automatically indented when the amount is entered. Do not indent manually. W no entry is required, select "No Entry for the account titles and enter for the amounts. 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 Credi > Accounts Receivable July 1 Bal. 1,190 Prepaid Insurance Supplies July 1 bal. 640 Prepaid Rent Prepare a trial balance at July 31. PRONGHORN COMPUTER CONSULTANTS Trial Balances Debit Credit Adjustment data 1 Adjustment of prepaid insurance 2 Adjustment of prepaid rent. 3. Supplies used, $1.200, 4 5 6. Equipment depreciation $500 per month Accrual of interest on note payable. (Hint: Use the formula from Illustration 3.17 to compute interest) Salaries for the second half of July, $10,300, to be paid on August 1. Estimated utilitles expense for July: $800 (invoice will be received in August). Income tax for July. 51.100, will be paid in August. (Hint: Use the accounts income Tax Expense and Income Taxes 7. 8 Payable.) Journalize the adjusting entries for the month ending July 31. (Credit account titles are automatically indented when the amounts entered. Do not indent manually. If no entry is required. Select "No Entry for the account ttles and enter for the amounts 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) No. Date Account Titles and Explanation Debit Credit 1 July 31 2 July 31 3 July 31 4 July 31 | 5 July 31 Post the adjusting entries for the month ending July 31. (Post entries in the order of journal entries presented in the previous part.) Cash July 1 Bal 4,840 July 1 4,000 July 2 45.000 July 3.960 July 10 1,190 July 3 7.800 July 16 13,200 July 6 3.400 July 27 14,600 July 14 360 July 18 10,300 July 31 Bal 49010 Accounts Receivable July 1 Bal 1.190 July 10 1.190 July 20 30.400 July 27 14,600 July 31 Bal 15.800 Prepaid Insurance July 3 3.960 Supplies uly 1 bal. 640 July 6 3400 Prepaid Rent July 3 7.800 Equipment Moly 24.000 July 31 24 000 Accumulated Depreciation Equipment Accounts Payable 360 July 14 360 July 1 Bal July 20 2.000 > Interest Payable Salaries and Wages Payable Income Taxes Payable Unearned Service Revenue July 13 1140 July 1 Bal 1.140 July 23 10.300 July 16 13.200 July 31 Bal 2,900 Notes Payable July 1 20,000 July 31 Bal 20.000 Common Stock July 1 Bal 3.290 July 2 45.000 July 31 B 48.290 Retained Earnings July 1 Bal 1.880 July 310 1.880 July 31 Bal 1.880 Service Revenue July 13 1140 July 20 30.400 July 23 10.300 July 31 Bal 41.840 Salaries and Wages Expense July 18 10,300 Rent Expense Advertising Expense July 20 2.000 July 31 Bal 2,000 Supplies Expense Utilities Expense >> > July 31 10,300 Depreciation Expense July 31 500 Income Tax Expense July 31 1.100