ed On July 1, 20X1, Arthur Kordts established A. Kordts Financial Services. Selected transactions for the first few days of July follow. DATE July 1, 20X1 July 1, 20X1 July 1, 20X1 July 1, 20x1 July 1, 20x1 July 3, 20X1 TRANSACTIONS Signed a lease for an office and issued Check 101 for $15,600 to pay the rent in advance for six months. Borrowed money from Bancorp West by issuing a four-month, 4.5 percent note for $40,000; received $39,400 because the bank deducted the interest in advance. Signed an agreement with Johnson Ventures to provide financial services for one year at $6,000 per month; received the entire fee of $72,000 in advance. The $72,000 was credited to Unearned Financial Service Fees. Purchased office equipment for $15,900 from Office Outfitters; issued a two-month, 6 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method. the year's 4111 $2,500/page Purchased a one-year insurance policy and issued Check 182 for $1,860 to pay the entire premium. Purchased office furniture for $16,176 from Furniture Warehouse; issued Check 103 for $8,176 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of four years and a $1,200 salvage value. The office furniture will be depreciated using the straight-line method. Purchased office supplies for $1,050 with Check 104. Assume $420 of supplies are on hand July 31, 20X1. July 5, 20X1 Required: 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 20X1. 2. Record the adjusting journal entries that must be made on July 31, 20X1. Analyze: What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1? Complete this question by entering your answers in the tabs below. Required 1 Required 2 K Analyze

On July 1,20x1. Arthur Kordts established A. Kordts Financial Services. Selected transactions for the first few days of July follow. DATE TRANSACTIONS July 1,261 Signed a lease for an office and issued Check 101 for $15,609 to pay the rent in advance for six nonths. July 1, 20X1 Borrowed money from Bancorp West by issuing a four-month, 4.5 percent note for 340 , 090 ; received 539 , 400 because the bank deducted the interest in advance. July 1,281 Signed an agreenent with Johnson Ventures to provide financial services for one year at 56 , eoe per monthi received the entire fee of $72,000 in advance. The $72,000 was credited to Unearned financial service fees. July 1,201 Purchased office equipant for $15,909 fron office Outfitters; issued a tmo-month, 6 percent note in payment, The equipaent is estimated to have a useful life of five years and a 51,500 salvage value. The equipitent inil be depreciated using the straight-line nethod. July 1, 20xi Purchased a one-year insurance policy and issued check 102 for 31 , b6e to pay, the entire premilur. July 3,201 Purchased office furniture for $16,176 fron furniture Warehouse; issued check 103 for $8,176 and agreed to pay the. balance in 60 days. The equipent has an estinated useful life of four years and a 31,200 salvage yalue. The office. furniture will be depreciated using the straight-line method. July 5, 20Xi Purchased office supplies for $1,050 with Check 104 . Assune $420 of supplies are on hand July 31 , 20xi. Required: 1. Record the transactions in the general journal Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 201 2. Record the adjusting journal entries that must be made on July 31,201. Analyze: What balance should be reflected in Uneorned Financial Service Fees at July 31,201 ? Complete this question by entering your answers in the tabs below