Credit Cash Debit $4.500 1,030 590 Accounts receivable Supplies Accounts payable $340 Unearned service revenue 960 Common stock 3.100 1.720 Retained earnings 56,120 $6.120 The company underwent a major expansion in July, New staff was hired and more financing was obtained Grouperconducted the following transactions during July 2022, and adjusts its accounts monthly July 1 Purchased equipment, paying $3.200 cash and signing a 2 year note payable for $17.200. The equipment has a 6-year useful life. The note has a 6% interest rate which is payable on the first day of each following month 2 Issued 17,200 shares of common stock for $43,000 cash 3 Paid $3,000 cash for a 12-month insurance policy effective July 1 3 Paid the first 2 Duly and August 2022) months rent for an annual lease of office space for $3.400 per month 6 Paid $3,300 for supplies. Visited client offices and agreed on the terms of a consulting project Grouper will bill the client. Connor Productions, on the 20th of each month for services performed Collected $1,030 cash on account from Milan Brothers. This client was billed in June when Grouper performed the 10 service Performed services for Fitzgerald Enterprises. This client paid $960 in advance last month All services relating to this payment are now completed 14 Paid $340 cash for a utility bill. This related to June utilities that were accrued at the end of June. 16 Met with a new client, Thunder Bay Technologies. Received $10,300 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $9.500 20 Performed services worth $24.100 on account and billed customers 20 Received a bill for $1,900 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 $8.500 of revenue from the cash advance received July 16. 27 Received $12.900 cash from customers billed on July 20. Adjustment data: 1. Adiustment of prepaid insurance 2. Adjustment of prepaid rent. 3. Supplies used. 51.100. 4. Equipment depreciation, $425 per month 5. Accrual of interest on note payable. 6. Salaries for the second half of July 59.500, to be paid on August 1 7. Estimated utilities expense for July $690 invoice will be received in August). 8. Income tax for July $1,030, will be paid in August. The chart of accounts for Grouper Computer Consultants contains the following accounts: Cash Accounts Receivable Supplies Prepaid Insurance. Prepaid Rent Equipment, Accumulated Depreciation-Equipment, Accounts Payable. Notes Payable, Interest u n e Salaries and Wares Payable, Unearned Service Revenue. Common Stock Retained Earnings GROUPER COMPUTER CONSULTANTS Trial Balances Debit Credit