For the past several years, Kel El has operated a part-time consulting business from his home. As of July 1, 2020, Kel decided to move to rented quarters and to operate the business, which was to be known as Ke Consulting, on a full-time basis. Ke Consulting entered into the following transactions during July. Transactions: July: 1. 1. 1. Kel El deposited $45,000 into KE Consulting as the sole owner. KE Consulting purchased supplies, $1,500; and office equipment, $15,500 with a 3 year note payable of $10,000 and the remainder in cash. Paid six months' rent on a lease rental contract, $ 6,000. Paid the yearly premium on property and casualty insurance policies, $2,400. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $5,000 2. 4. 4. 8. 10. 14. 15. 15. 17 18. 22. Purchased additional office equipment on account from Office Equip Co., $4,500. Keltook clients out for a meal to discuss business, $100 Paid cash for a newspaper advertisement, $150, Recorded services provided on account for the period July 1-14, $3,500. Paid Office Equip Co. for part of the debt incurred on July 4, $2,500. Paid part-time receptionist for two weeks' salary, $500. Recorded cash from cash clients for service provided during the period July 1-16, $3,500. Paid cash for supplies, $2000. Recorded services provided on account for the period July 15-22, $3,000. Recorded cash from cash clients for services provided for the period July 17-25, $3,000. Received cash from clients on account, $2,000. Paid part-time receptionist for two weeks' salary, $500. Pald water bill for July $45. Received the electricity bill for July, $350. (Will pay it later) Recorded cash from cash clients for services provided for the period July 26-30, $2,000. Recorded services provided on account for the remainder of July, $2,500. Kel El withdrew $3,000 for personal use. 25. 26. 28. 29. 30. 30. 30. 30 2. Post the journal to a ledger of four-column accounts. 3. Prepare a trial balance as of July 31, 2020, listing all the accounts in the order given in the ledger. 4. Journalize and post the adjusting entries. a) One month of Insurance has expired. b) Supplies on hand on July 31 are $1,500. c) Accrued receptionist salary on July 31 is $200. d) One month of rent was used. e) Unearned fees on July 31 are $3,500. f) $1000 of fees needs to be accrued c) Calculate the interest for one month on the Note Payable using a 3% interest rate. (Use the Note Payable account and round to nearest whole number.) h) Depreciation of office equipment for July based on SL depreciation over 5 years. (Round to nearest whole number) 0 Bad Debt is 1% of sales for the month of July. (Hint: Use the revenue balance after other adjusting entries have been completed) 5. Prepare the adjusted trial balance. 6. Prepare an income statement, a statement of owner's equity, and a balance sheet