business, which was to be known as Diamond Coneiting on a ful-tine basis. Daanond entered inb the foloning ransactions durng Ju. I Tho folowing atsets ware received trom Sivfy Lopea in cachunge for ourinon thod cav, 514000 . accounts receivable, se0, 800; supplos, 53,100; and otice equipreent, 57,300 . There weie no labitites received 1 Paid two montha' tert on a lease rerital contriat, 84,800. 2. Paid the premions on property and casuaby ineurance policiek $4.500. unearned tees, ssioco. 5 Pufchased additional olfice equgment co aroount from Oilice siaton Co, $6,500. 6 Piecened cash trom cnts on dcoount, 515,100 10. Paid cash for a newspaper advertitement, 5t00 12. Pald olice Staton Co: for part et the deot incured on uly 5, 55,200 12. Recorded services poovided on account tee the pariod daly 1-12, $13300. 14. Paid receptionist tor two weeks' saday. S1,7oo Becord the following transacions on Page 2 of the pumat: Ju. 17 Aepolided cash from cash clenes tor tees earred during ine perlod Jy 1-17; s9, 450 . 18. Paid cash for auppiles $500. 20. Pecolded senvees provided on account for the period Jely 1320.56.750 A4 Pacoirded cash from cash clents tae teqes earned for the period uly 1724,54.000. Jul. 17 Recorded cash trom cash clients for tees earned during the period July 117,$9,450 18. Paid cash for supplies, $600 20 Recorded services provided on account tor the period July 1320,56.750. 24 Recorded cash from cash clients for fees earned for the period July 1724,$4,000. 25 Rencelved cash from clients on account, $12.000. 27 Paid receptioniat for two wooks' salary, $1,700. 29. Paid telephone bill for July. $326. 31 Paid eleciricity bill for July, $675. 31 Recorded cash from cash clients for fees earned for the period July 2531,55,400. 31 Recorded servicos provided on account for the remainder of July, $3,000. 31 Paid dividends, $12,500 Required: 1. Journaife each transaction in a fo-column joumat starting on Rage 1. (Do not insert the account numbers in the joumal at this time.) 2. Post the joumal to a ledger of founcolumn accounts. Add the appropriate posting reference to the joumal: 3. Prepare an unadiusted trial balance. 4. Af the end of duly, the following addustment data wore assembled Analyze and use these data to complete requirmments (5) and (6) (a) insuranice axpired during dub is sess. (b) Supplies on hand on duly 27 are $1,525 (c) Depreciation of otice equipment for July is $750 (d) Acenved roceptionist salary on July 3r is $170 (e). Rent expired during duly is $2,400. (6) Lreamid fees on vuly 3 t are $2,500. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and compleie the work sheet. 6. A. Joumalize the adjusting entries on page 3 of the joumal Adjusting entries are recorded on July 31 . B. Post the adjusting entries, inserting batances in the accounts affected. 7. Prepare an adlusted trial balance. 8. A. Prepare an income statement for the month ended July 31,20V. B. Prepare a statement of stockholders' equily for the month ended wily 31,20r. C. Prepare a balance sheot as of July 31,20Y. 9. A. Joumalize the olosing entnes on paige 4 of the journal. B. Post the closing entrios, inserting balances in the accounts affected, 10. Prepare a post-closing trial balance. CHART OF ACCOUNTS Diamond Consulting General Ledger ASSETS REVENUE 11 Cash 41 Fees Eamed 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 55 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Labels and Amount Descriptions Labels Current assets Current liabilities Expenses For the Month Ended July 31, 20Y2 July 31,20 Y2 Property, plant, and equipment Revenues Amount Descriptions Balances, July 1,20Y2 Baiances, July 31, 20Y2 Dividends Issued common stock Net income Net loss Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity For the past several years, Sttity Lopez has operated a part-time consulting butiness from tis home. As of vuly 1, 20Y2, Stelly decided to mave to rended quarters and to operale the busines5, which was to be known as Diamond Consulting, on a fut-time basis. Diamond eniered into the following transactions during July: Jui. 1 The follewing assets ware received troen Stelly Lopez in exchango for common stock: cash, $14,000; accounts recevable, 520,800; wupples, $3,100; and oifce equipment, $7,500. There ware no labilities recetved. 1. Paid two months' fent on a lease rental contract, 54,800 2. Paid the promains on property and casualy insurance posoies, 54,620 4. Aleceved cash frem clients as an advance payment for services to bo provided, and recorided it as unearned tees, 55,000 5. Purchased additional oftice oquipment on account trom Orice Station Co, $6,500. 6 Peowived eash from clients on acoount, $15,100 10. Paid cash for a newspaper adverisement, 5400 : 12. Paid Onice Station Co. for part of the debt incurred on July 5, s5,200. 12. Recorded services provided on acoount for the period July 112,513,300 14 Paid recoptionist for bwo weeks' salary $1,700. Record the following transactions on Page 2 of the journal: Jul. 17 Recorded cash from cash clients for fees earned during the period July 117,$9,450. 18 Paid cash for supplies, $600. 20 Recorded services provided on account for the period July 1320,$6,750. 24 Recorded cash from cash clients for fees earned for the period July 1724,$4,000. 26 Received cash from clients on account, $12,000, 27 Paid receptionist for two weeks' salary, $1,700. 29 Paid telephone bill for July, $325. 31 Paid electricity bill for July, $675. 31 Recorded cash from cash clients for fees earned for the period July 2531,$5,400. 31 Recorded services provided on account for the remainder of July, $3,000. 31 Paid dividends, $12,500. 1. Journalize each transaction in a two-column joumal starting on Page 1. (Do not insert the account numbers in the joumal at this time.) 2. Post the journal to a ledger of four-column accounts. Add the appropriate posting reference to the joumal. 3. Prepare an unadjusted trial balance. 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6). (a) Insurance expired during July is $385. (b) Supplies on hand on July 31 are $1,525. (c) Depreciation of office equipment for July is $750. (d) Acorued receptionist salary on July 31 is $170. (e) Rent expired during July is $2,400. (i) Unearned fees on July 31 are $2,500. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet. 6. A. Joumalize the adjusting entries on page 3 of the joumal. Adjusting entries are recorded on July 31 . B. Post the adjusting entries, inserting balances in the accounts affected. 7. Prepare an adjusted trial baiance. 8. A. Prepare an income statement for the month ended July 31,20y. B. Prepare a statement of stockholders' equity for the month ended July 31, 20Y2. C. Propare a balance sheet as of July 31,20re. 9. A. Joumalize the closing entries on page 4 of the joumal. B. Post the closing entries, inserting balances in the accounts affected. 10. Prepare a post-closing trial balance CHART OF ACCOUNTS Diamond Consulting General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 55 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Labels and Amount Descriptions Labels Current assets Current liabilities Expenses For the Month Ended July 31,20 Y2 July 31,20 Y2 Property, plant, and equipment Revenues Amount Descriptions Balances, July 1, 20 Y2 Balances, July 31,20Y2 Dividends Issued common stock Net income Net loss Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity