borway.com - / 60 II! Question 2 of 2 - / 60 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. July 1 N 2 3 3 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 Milani Brothers. This client was billed in June when Indigo performed the 6 ON 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. Met with a new client. Thunder Bay Technologies. Received $13.900 cash in advance for future services to be 14 33 F A here to search 99 - / 60 Question 2 of 2 - / 60 Journalize the July transactions. (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 Credit Date Account Titles and Explanation 33F 2 o O 99 arch Question 2 of 2 Question 2 of 2 - / 60 Prepare a trial balance at July 31. INDIGO COMPUTER CONSULTANTS Trial Balances Debit Credit $ 33F O (fb 1990 Paren Question 2 of 2 -/60 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 entrles 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 33"F o o search a ** O 28 . Prepare an adjusted trial balance. INDIGO COMPUTER CONSULTANTS Trial Balances Debit Credit $ ere to search O 33F 799 @ Question 2 of 2 Prepare an income statement for July. INDIGO COMPUTER CONSULTANTS Income Statement 33"F C ORA a $ 99 ype here to search Question 2 of 2
