For the past several years, Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business, which was to be known as Arborvite Consulting, on a full-time basis. Arborvite Consulting entered into the following transactions during July:

Jul.	1	The following assets were received from Samantha Hogan: cash, $25,700; accounts receivable, $30,200; supplies, $5,100; and office equipment, $12,100. There were no liabilities received.
	1	Paid three months rent on a lease rental contract, $8,100.
	2	Paid the premiums on property and casualty insurance policies, $6,100.
	3	Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $10,800.
	5	Purchased additional office equipment on account from Office Necessities Co., $6,900.
	6	Received cash from clients on account, $17,300.
	10	Paid cash for a newspaper advertisement, $680.
	12	Paid Office Necessities Co. for part of the debt incurred on July 5, $4,100.
	12	Provided services on account for the period July 112, $19,200.
	14	Paid receptionist for two weeks salary, $2,000.

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, $14,100.
	18	Paid cash for supplies, $1,400.
	20	Provided services on account for the period July 1320, $12,200.
	24	Received cash from cash clients for fees earned for the period July 1724, $11,500.
	26	Received cash from clients on account, $16,300.
	27	Paid receptionist for two weeks salary, $2,000.
	29	Paid telephone bill for July, $440.
	31	Paid electricity bill for July, $910.
	31	Received cash from cash clients for fees earned for the period July 2531, $9,600.
	31	Provided services on account for the remainder of July, $7,400.
	31	Samantha withdrew $27,100 for personal use.

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 $510.
	Supplies on hand on July 31 are $3,900.
	Depreciation of office equipment for July is $540.
	Accrued receptionist salary on July 31 is $190.
	Rent expired during July is $2,700.
	Unearned fees on July 31 are $4,100.

Arborvite Consulting

ADJUSTED TRIAL BALANCE

July 31, 20Y9

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	52,470
2	Accounts Receivable	35,400
3	Supplies	3,900
4	Prepaid Rent	5,400
5	Prepaid Insurance	5,590
6	Office Equipment	19,000
7	Accumulated Depreciation-Office Equipment		540
8	Accounts Payable		2,800
9	Salaries Payable		190
10	Unearned Fees		4,100
11	Samantha Hogan, Capital		73,100
12	Samantha Hogan, Drawing	27,100
13	Fees Earned		80,700
14	Salary Expense	4,190
15	Rent Expense	2,700
16	Supplies Expense	2,600
17	Depreciation Expense	540
18	Insurance Expense	510
19	Miscellaneous Expense	2,030
20	Totals	161,430	161,430

9. A.	Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31.
9. B.	Add the appropriate posting reference to the closing entries in the journal in CengageNOW.

PAGE 4

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
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4
5
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