For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July:

Jul.	1	The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received.
	1	Paid three months rent on a lease rental contract, $6,000.
	2	Paid the premiums on property and casualty insurance policies, $4,500.
	4	Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000.
	5	Purchased additional office equipment on account from Office Necessities Co., $5,100.
	6	Received cash from clients on account, $12,750.
	10	Paid cash for a newspaper advertisement, $500.
	12	Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000.
	12	Provided services on account for the period July 112, $14,200.
	14	Paid receptionist for two weeks salary, $1,500.

Record the following transactions on Page 2 of the journal:

Jul.	17	Received cash from cash clients for fees earned during the period July 117, $10,400.
	18	Paid cash for supplies, $1,000.
	20	Provided services on account for the period July 1320, $9,000.
	24	Received cash from cash clients for fees earned for the period July 1724, $8,500.
	26	Received cash from clients on account, $12,000.
	27	Paid receptionist for two weeks salary, $1,500.
	29	Paid telephone bill for July, $325.
	31	Paid electricity bill for July, $675.
	31	Received cash from cash clients for fees earned for the period July 2531, $7,100.
	31	Provided services on account for the remainder of July, $5,500.
	31	Jolene withdrew $20,000 for personal use.

Required:

1.

Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

2.

Post the July transactions.

A.

Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

B.

Add the appropriate posting reference to the journal in CengageNOW.

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).

	Insurance expired during July is $375.
	Supplies on hand on July 31 are $2,850.
	Depreciation of office equipment for July is $400.
	Accrued receptionist salary on July 31 is $140.
	Rent expired during July is $2,000.
	Unearned fees on July 31 are $3,000.

5.

(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.

6.

A.	Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31.
B.	Use the attached spreadsheet in the Ledger panel to post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW.

7.

Prepare an adjusted trial balance.

For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance.

Required:

8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owners equity, and a balance sheet for the month ended July 31, 2019. If you didnt complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owners equity, and a balance sheet for the month ended July 31, 2019. *If the account balance is zero (0), enter a zero (0).

*Be sure to read the instructions for each financial statement carefully.

9.

A.	Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31.
B.	Use the spreadsheet to post the closing entries to the ledger of four-column accounts, inserting balances in the accounts affected. Add the appropriate posting reference to the closing entries in the journal in CengageNOW.

10. Prepare a post-closing trial balance.

CHART OF ACCOUNTSGourmet ConsultingGeneral Ledger

	ASSETS
11	Cash
12	Accounts Receivable
14	Supplies
15	Prepaid Rent
16	Prepaid Insurance
18	Office Equipment
19	Accumulated Depreciation-Office Equipment

	LIABILITIES
21	Accounts Payable
22	Salaries Payable
23	Unearned Fees

	EQUITY
31	Jolene Upton, Capital
32	Jolene Upton, Drawing
33	Income Summary

	REVENUE
41	Fees Earned

	EXPENSES
51	Salary Expense
52	Rent Expense
53	Supplies Expense
54	Depreciation Expense
55	Insurance Expense
59	Miscellaneous Expense

Labels

Current assets

Current liabilities

Expenses

For the Month Ended July 31, 2019

July 31, 2019

Property, plant, and equipment Revenues Amount Descriptions Decrease in owners equity Increase in owners equity Investments during the month Net income Net loss Jolene Upton, capital, July 1, 2019 Jolene Upton, capital, July 31, 2019 Total assets Total current assets Total expenses Total liabilities Total liabilities and owners equity Total property, plant, and equipment Withdrawals