At lune 30, 2017, the end of its most recent fiscal year. Flounder Computer Consultants post-closing trial balance was as follows: Credit Debit $4,390 1,010 580 Cash Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Retained earnings 5340 940 3.000 1.700 $5,980 $5,980 1 2 3 6 The company underwent a major expansion in July. New stat was hired and more financing was obtained. Flounder conducted the following transactions during July 2017 and adjusts its accounts monthly July Purchased equipment, paying $3,600 cash and signing a 2-year nete payable for $16,500. 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 16.800 shares of common stock for 542,000 cash. Paid $3,000 cash for a 12-month insurance policy effective July 1 3 Daid the first2(July and August 2017) months' rent for an annual lease of office space for $2.400 per month Pald $3,200 for supplies Visited client offices and agreed on the terms of a consulting project. Founder will bill the client, Connor Productions on the 20th of each month for services performed 10 Collected $1.010 cash on account from Milani Brothers. This client was billed in June when Flounder performed the service 13 Performed services for Fitzgerald Enterprises. This client said 8940 in advance last month. All services relating to this payment are now completed Paid $340 cash for a utility bill. This related to June utilities that were accrued at the end of June. Met with a new ellent. Thunder Bay Technologies. Received $10,100 cash in advance for future services to be performed 18 Paid serni-monthly salaries for 59.200 20 Performed services worth $23.500 on account and billed customers 20 Received a bill for $1,800 for advertising services received during July. The amount is not dut until August 15 23 Performed the first phase of the project for Thunder Bay Technologies. Recognized $8.400 of revenue from the cash advance received July 16. 27 Received $12,600 cash from customers billed on July 20. Adjustment dat 2 3 5. Adjustment of prepaid insurance Adjustment of prepaid rent. Supplies used. 51.050 Equipment depreciation 5425 per month Accrual of interest on note payable Salaries for the second half of July, 59.200, to be paid on August 1 Estimated tie pense for July, 5670 invice will be received in August). Income tax for July, 51,010 wul be paid in August 7 = 1 2 3 6 19 9 The company underwent a major expansion in July, New staff was hired and more financing was obtained. Flounder conducted the following transactions during July 2017 and adjusts its accounts monthly July Purchased equipment, paying $3,600 cash and signing a 2-year note payable for $16.800. 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 Issued 16,800 shares of common stock for $42,000 cash. Paid $3,000 cash for a 12-month insurance policy effective July 1 Paid the first 24july and August 2017) months rent for an annual lease of office space for 3,400 per month Paid $3.200 for supplies Visited client offices and agreed on the terms of a consultific project. Flounder will bill the client, Connor Productions, on the 20th of each month for services performed Collected $1,010 cash on account from Milani Brothers. This client was billed in June when Flounder performed the service Performed services for Fitzgerald Enterprises. This client paid $940 in advance last month. All services relating to this payment are now completed Paid S340 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 $10,100 cash in advance for future services to be performed Paid semi-monthly salaries for 59,200. 20 Performed services worth $23.500 on account and billed customers 20 Received a bill for 51,800 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 $8,400 of revenue from the cash advance received July 16, Received 512,600 cash from customers billed on July 20 10 13 16 18 23 27 Adjustment data 1 Adjustment of prepaid insurance. 2 Adjustment of prepaid rent. Supplies used, 51,050 Equipment depreciation. 5425 per month 3. Accrual of interest on note payable 6 Salaries for the second half of July. 59.200, to be paid on August 1 7 Estimated utilities expense for July, 5670 invoice will be received in August). B. Income tax for July $1.010, will be paid in August OLUN The chart of accounts for Flounder 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 To Payable. Salaries and Wages Payable Uncanned Service Revenue, 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 Expense Supplies Expense, and Utilities Expense Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part) Cash July 1 Bal. 4,390 > V ly tal Accounts Receivable 2010 0 July 1 Bal 1010 20 12800 31 24510 Prepaid insurance Supplies July 1 ta 580 Buy 3200 S760 Prepaid Rent Equipment Accounts Payable July 18 340 >> Uneaed Senac Rev 940 Accounts Payable Jul I Bal 340 Uneared Service Revenue Notes Payable Common Stock July 18 3.000 Retained Earnings July 1 Bat 2700 Service Revenue Salaries and Wages Expense Advertising Expense