For the past several years. Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Ye, 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 Tansactions during July Jul. 1 1 2 3 The following assets were roccived from Samantha Hogan: cash, $25,700; accounts receivable, $30,200: supplies, S5.100; and ollice equipment. 12,100. There were no liabide received. Paid three months' rent on a casc rental contract. 58,100. Paid the premiums on property and casualty insurance policies, S6,100. Heccled cash from clients as an advance payment for services to be provided and recorded as uneamed fees, $10,000. Purchased additional office equipment on account from Office Necessities Co. 58.900. Received cash from clients on account, $17.300. Paid cash for a newspaper advertisement, san. Paid Office Necessities Co. for part of the debt incurred on July 5, $4,100. Provided services on account for the period July 1-12. $19,200 Paid receptionist for two weeks' salary, $2,000. 5 10 12 12 14 Record the following transaction Page 2 of the journal Jul 17 18 20 24 ** 28 27 Received cash from cash clients for teeseemed during the period July 1-17. S14,100 Paid cash for supplies, $1,400 Provided services on account for the period Jy 13-20, 12.200. Recived cash from cash clients for toes carncc for the period July 17-24, $11,500. Received cseh from clients on sccount. $16,300. Paid receptionist for too weeks' salary. 52,000. Paid telephone bil for July, 440 Paid electricity bill for July, 8910, Received cash from cash clients for less earned for the period July 25-31, 89,600 Provided services on account for the remainder of July, $7.400 Samantha withdrew $27,100 for personal use. 28 31 31 31 31 Required: 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. Accounts with zero balances can be left blank. 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 $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. 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. CHART OF ACCOUNTS Arborvite Consulting General Ledger ASSETS REVENUE 41 Fees Earned 11 Cash 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Rent 16 Prepaid Insurance 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 18 Office Equipment 19 Accumulated Depreciation Office Equipment 55 Insurance Expense 59 Miscellaneous Expense LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Samantha Hogan, Capital 32 Samantha Hogan, Drawing Download the attached SPREADSHEET 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. 2. A. Post the July transactions from the journal to a ledger of four-column accounts. 6. B. Post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. 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. 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 owner's equity, and a balance sheet for the month ended July 31, 2019. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet for the month ended July 31, 2049.* *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 ACCOUNTS Arborvite Consulting General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation Office Equipment EXPENSES 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Samantha Hogan, Capital 32 Samantha Hogan, Drawing Labels Current assets Current liabilities Expenses For the Month Ended July 31, 2049 July 31, 2049 Property, plant, and equipment Revenues Amount Descriptions Decrease in owner's equity Increase in owner's equity Investments during the month Net income Net loss Samantha Hogan, capital, July 1, 2049 Samantha Hogan, capital, July 31, 2049 Total assets Total current assets Total expenses Total liabilities Total liabilities and owner's equity Total property, plant, and equipment Withdrawals 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. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 4 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 3 4 5 6 7 8 9 10 11 Use the spreadsheet completed in Part 1 of this problem to complete the following steps of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 9. B. Post the closing entries to the ledger of four-column accounts, inserting balances in the accounts affected. 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement for the month ended July 31, 2049. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement for the month ended July 31, 2049. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. You will not need to enter colons (:) on the income statement. Arborvite Consulting Income Statement (Label) 1 2 (Label) 3 4 5 6 7 8 9 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet as of July 31, 2049. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a balance sheet as of July 31, 2019. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (1) or the word "Less" on the balance sheet; they will automatically insert where necessary. Enter all values as positive amounts. When entering assets, enter them in order of liquidity. Arborvite Consulting Balance Sheet (Label) Assets 2 (Label) 3 4 5 6 7 8 9 (Label) 10 11 12 13 14 Liabilities 15 (Label) 16 17 18 19 20 Owner's Equity 21 22 10. Prepare a post-closing trial balance. Arborvite Consulting POST-CLOSING TRIAL BALANCE July 31, 2049 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation Office Equipment 8 Accounts Payable 9 Salaries Payable 10 Unearned Fees 11 Samantha Hogan, Capital 12 Totals