For assignment 5, please prepare problem ACR4.4 on pages 4-54 and 4-55. Narrations in the journal are not required, and neither is cross-referencing. The problem requires "T" accounts for the general ledger, but you may use the account form (provided on Canvas) if you wish. If you choose to use "T" accounts, see the Cash account below for the form you should use. Note that "T" accounts do not substitute for journalising. . Just create one journal (all in one place) and one general ledger (again, all in one place, i.e., not divided across the assignment by AJEs and closing entries). Ignore GST. Follow the instructions in the textbook, but for Instruction g., prepare a SOCI and Balance Sheet in the form and format required in this course. You do not have to prepare a Statement of Retained Earnings. Also, add the following instruction: j. Prepare a residual analysis, including accounts debited and credited, to explain the AJE required for "Accrual of interest on note payable". (See Adjustment data #5 on page 4-54.) Cash 4,000 3,600 8,000 3,800 - 400 11,000. July 1 Bal. 5,230 July 1 3 3 10 16 27 50,000 1,200 12,000 15,000 18 July 31 Bal. 52,630 ACR4.4 At June 30, 2020, the end of its most recent fiscal year, Green River Computer Consultants post-closing trial balance was as follows (amounts in thousands): Debit 15,230 1,200 690 Credit Accounts receivable Supplies Accounts payable Unearned service revenue 1,120 4,000 1,600 Y7,120 Retained earnings V7,120 The company underwent a major expansion in July. New staff was hired and more financing was ob- tained. Green River conducted the following transactions during July 2020, and adjusts its accounts monthly. July Purchased equipment, paying Y4,000 cash and signing a 2-year note payable for Y20,000. 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 Shareholders invested Y50,000 cash in the company in exchange for ordinary shares. 3 Paid Y3,600 cash for a 12-month insurance policy effective July 1 3 Paid the first 2 (July and August 2020) months' rent for an annual lease of office space for 14,000 per month. Paid Y3,800 for supplies. Visited client offices and agreed on the terms of a consulting project. Green River will bill the client, Connor Productions, on the 20th of each month for services performed. 6 9 10 Collected 1.200 cash on account from Milani Brothers. This client was billed in June when 13 Performed services for Fitzgerald Enterprises. This client paid 1,120 in advance last month. 14 PaidY400 cash for a utility bill. This related to June utilities that were accrued at the end of 16 Met with a new client, Thunder Bay Technologies. Received Y12,000 cash in advance for Green River performed the service All services relating to this payment are now completed. une. future services to be performed. Paid semi-monthly salaries for Y11,000. Performed services worth Y28,000 on account and billed customers. Received a bill for Y2,200 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 Y10,000 18 20 20 23 f revenue from the cash advance received July 16. Received Y15.000 cash from customers billed on July 20. 27 Adjustment data: 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 3. Supplies used, Y1,250. 4. Equipment depreciation, Y500 per month. 5. Accrual of interest on note payable. (Hint: Use the formula from Ilustration 3.17 to compute interest.) 6. Salaries for the second half of July, Y11,000, to be paid on August I 7. Estimated ulities expense for July, Y800. 8. Income tax for July. 1.200. will be paid in August. (Hin: Use the accounts Income Tax Expense The chart of accounts for Green River Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable. Unearned Service Revenue, Share Capital-Ordinary, Retained Earnings, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Sala ries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, and Utilities Expense. Instructions a. Enter the July 1 balances in the ledger accounts. (Use T-accounts.) b. Journalize the July transactions. c. Post to the ledger accounts. d. Prepare a trial balance at July 31 e. Journalize and post adjusting entries f. Prepare an adjusted trial balance. g. Prepare an income statement and a retained earnings statement for July and a classified statement of for the month ending July 31 Net income 6,770 Tot. assets 99,670 g. financial position at July 31 h. Journalize and post closing entries and complete the closing process. i. Prepare a post-closing trial balance at July 31