Date Transaction/Events August 1 Purchased Equipment, paying $20,000 cash, and signing a 2-year note payable for $100,000. 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. 2 Issued 20,000 shares of common stock for $250,000 cash. 3 Paid $18,000 cash for a 12-month insurance policy effective August 1. 3 Paid two months' rent for August and September at an annual lease of office space for $20,000 per month. 6 Paid $19,000 for supplies. 9 Visited client offices and agreed on the terms of a consulting project. Elizabeth River will bill the client every month on the 20th of each month for services performed 10 Collected $6,000 cash on account from Niki Brothers. This client was billed in July when Elizabeth River performed the service. 13 Performed services for Jedai Enterprises. This client paid $5,600 in advance last month. All services relating to this payment are now complete. 14 Paid $2,000 cash for a utility bill. This related to July utilities that were accrued at the end of July. 16 Signed a contract with a new client, Tina Technologies. Received $60,000 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $ 55,000 20 Performed services worth $ 140,000 on the account, and customers were billed. 20 Received a bill for $11,000 for advertising services received during August, but the amount is not due until September 15. 23 Completed the part of the project for Tina Technologies. Recognized $50,000 of revenue from the cash advance received on August 16, 27 Received $75,000 in cash from customers who were billed on August 20. 31 Declared and paid dividends of $2,000 Comprehensive Problem Financial Accounting 1 Page STEPS TO SOLVE THE COMPREHENSIVE PROBLEM Part 1: Step: 1. Prepare the general journal entries for the month in the proper format (Use JF-01 for the first page of the journal) Step : 2. Post the balances into the ledger accounts given in the trial balance in the problem and post the general journals into the Ledgers while calculating the running balances. Step : 3. Prepare an unadjusted Trial Balance with the final balances computed in step 2 Comprehensive Problem On July 31, 2020, the end of its most recent fiscal year, Elizabeth River Business Consultants' post- closing trial balance was as follows: Accounts Debit Credit Cash 26,150 Accounts receivable 6,000 Supplies 3,450 Utility Expense Payable $ 2,000 Unearned service revenue 5,600 Common stock 18,000 Retained earnings 10,000 $ 35,600 35,600 The company engaged in the following transactions during August 2020, and adjusts its accounts monthly: Date Transaction/Events