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

Question 1 of 1 -/1 At June 30, 2022, the end of its most recent fiscal year, Monty Computer Consultants post-closing trial balance was as follows: Debit Credit $5,610 1,290 710 Cash Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Retained earnings $430 1.080 3.280 2,820 $7,610 $7.610 The company underwent a major expansion in July, New staff was hired and more financing was obtained Monty 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 Issued 21,000 shares of common stock for $52,500 cash. 2 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 $4,100 per month July 1 2 3 3 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 21,000 shares of common stock for $52,500 cash. Paid $3,600 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 $4,100 per month Paid $3,500 for supplies Visited client offices and agreed on the terms of a consulting project. Monty will bill the client, Connor Productions, on the 20th of each month for services performed Collected $1,290 cash on account from Milani Brothers. This client was billed in June when Monty performed the 6 9 10 service. 13 14 16 Performed services for Fitzgerald Enterprises. This client paid $1,080 in advance last month. All services relating to this payment are now completed, Paid $430 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 $11,100 cash in advance for future services to be performed Paid semi-monthly salaries for $9.900. Performed services worth $30,300 on account and billed customers. Received a bill for $2.400 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 $9,500 of revenue from the cash advance received July 16. 18 20 20 23 27 Received $15,600 cash from customers billed on July 20 The chart of accounts for Monty 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 Accounts Receivable Supplies Accounts Payable Unearned Service Revenue Common Stock Retained Earnings (b) Journalize the July transactions. (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 o 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 o for the amounts.) Date Account Titles and Explanation Debit Credit (c) Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.) Cash July 1 Bal 5,610 . Accounts Receivable 1.290 July 1 Bal (d) Prepare a trial balance at July 31. MONTY COMPUTER CONSULTANTS Trial Balances Debit Credit $ $ (e 1) Adjustment data: 1 2 3. 4. Adjustment of prepaid insurance. Adjustment of prepaid rent. Supplies used, $1,320 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. $9,900, to be paid on August 1 Estimated utilities expense for July, $900 (invoice will be received in August). Income tax for July, $1,000, will be paid in August. (Hint: Use the accounts Income Tax Expense and Income Taxes Payable.) 5. 6. 7 8. Journalize the adjusting entries for the month ending July 31. (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 0 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 o for the amounts.) Debit Credit No. Date Account Titles and Explanation July