For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2012, Stefly decided to move to rented quarters and to open transactions during July Jul 1 1 2 4 The following assets were received from Steffy Lopez in exchange for common stock: cash, 512,500, accounts receivable, $20 300 supplies, 53,100, and office equipment, $7.500. There were no liabilities received Paid two months rent on a lease rental contract, 54,800 Paid the premiums on property and casualty insurance policies, 54,500 Received cash from clients as an advance payment for services to be provided, and recorded it as uneamed fees, $5,500 Purchased additional office equipment on account from Office Station Co. 56,500. Received cash from clients on account, $15.300. Paid cash for a newspaper advertisement, $400. Paid Office Station Co. for part of the debt incurred on July 5 SS 200 Recorded services provided on account for the period July 1-12. 513,300. Paid receptionist for two weeks salary, 51.700. 5 6 10 12 12 14 Record the fonowing transactions on Page 2 of the joumot: Jul 17 18 20 24 26 27 Recorded cash from cash clients for fees eamed during the period July 1-17. 59,450. Paid cash for supplies, 5600 Recorded services provided on account for the period July 15-20, 56,650 Recorded cash from cash clients for fees earned for the period July 17-24 55.000 Received cash from clients on account $12,000 Paid receptionist for two weeks' salary, 51,700 Paid telephone bill for July 5400 Paid electricity bill for July 5675 Recorded cash from cash clients for fees earned for the period July 25-31. $5.200 Recorded services provided on account for the remainder of July, 53000 Paid dividends. 512.500 29 31 31 31 31 CHART OF ACCOUNTS Diamond Consulting General Ledger REVENUE 41 Fees Earned ASSETS 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 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 Uneamed Fees EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Labels Current assets Current liabilities Expenses For the Month Ended July 31, 20Y2 July 31, 20Y2 Property, plant, and equipment Revenues Amount Descriptions Balances, July 1, 20Y2 Balances, July 31, 20Y2 Dividends Issued common stock Net income Net loss Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders equity Total property, plant and equipment Total stockholders equity Labels FACE JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REP. C CREDIT 1 JUL 1 Cash ASSETS LIABILITIES LOUITY 11 1 Accounts Receivable DEBIT 17,500.00 20,800.00 3,100.00 12 1 14 Supplies Office Equipment 1 18 7,500.00 1 P 5 33 13 T T 17 11 POEZ JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. RET DEBIT CREDIT ASSETS LAITIS 1 EQUITY 2 3 4 5 6 7 B D 10 N 11 N 12 T TO 15 Ti 14 TE 15 T T TI 11 10 20 21 MOES JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 JE 5 4 R 5 A B D 3 Is 9 10 11 12 13 PAGE 4 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF: DELIT CREDIT 1 ASSETS LIABILITIES EQUITY Closing Entries LEDGER Account 11 Account No. 12 Account No 54 Account No 15 Account No. 16 Account No. 18 Account No. 19 Account No. 21 Account: Cash Account Accounts Receivable Account Supplies Account: Prepaid Rent Account: Prepaid Insurance Account Office Equipment Account: Accumulated Depreciation Account Accounts Payable Account: Salaries Payable Account: Unearned Fees Account Common Stock Account Retained Earnings Account: Dividends Account: Fees Earned Account: Salary Expense Account: Rent Expense Account Supplies Experte Account Depreciation Expense Account Insurance Expense Account Miscellaneous Expense Account No. 22 Account No. 20 Account No. 31 Account No. 2 Account No. 33 Account No. 41 Account No. 51 Account No. 52 Account No. 50 Account No. 54 Account No 55 Account No. 99 2 Diamond Consulting UNADJUSTED TRIAL BALANCE ift July 31, 20Y2 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies + Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation $ Accounts Payable 9 Salaries Payable 10 Unearned Fees 11 Common Stock 12 Retained Earnings 13 Dividends 14 Fees Earned 15 Salary Expense 16 Rent Expense 17 Supplies Expense 13 Depreciation Expense 19 Insurance Expense 20 Miscellaneous Expense 21 Totals 2 Adjusted Trial Balance Ift ADJUSTED TRIAL BALANCE July 31, 2012 ACCOUNT TITLE DEBIT CREDIT 1 Cash 25,825.00 2 Accounts Receivable 16,450.00 3 Supplies 3,700.00 4 Prepaid Rent 4,800.00 5 Prepaid Insurance 6 Office Equipment 4,500.00 14,000.00 7 Accumulated Depreciation 8 Accounts Payable 9 Salaries Payable 1,300.00 10 10 Uneamed Fees 5,500.00 11 11 Common Stock 12 12 Retained Eamings 15 15 Dividends 12,500.00 14 14 Fees Earned 35,950.00 15 3,400.00 15 17 15 Salary Expense 16 Rent Expense 17 Supplies Expense 12 Depreciation Expense 19 Insurance Expense 20 Miscellaneous Expense 16 19 20 1,475.00 21 Totals Diamond Consulting Income Statement For the Month Ended July 31, 2042 1 Fees earned 2 Expenses: 3 Salary expense Rent expense 5 Supplies expense Depreciation expense Insurance expense Miscellaneous expense 9 Total expenses 10 Net Income Diamond Consulting Statement of Stockholders' Equity For the Month Ended July 31, 20Y2 Common Stock Retained Earnings Total 3 I Balance Sheet Diamond Consulting Balance Sheet (Label) 1 Assets 2 (Label) 5 5 9 Label) 10 11 12 13 14 Uabilities 15 Label 16 17 18 19 20 Stockholders' Equity 23 22 2 24 Diamond Consulting POST-CLOSING TRIAL BALANCE July 31, 20Y2 ACCOUNT TITLE DEBIT CREDIT 1 Cash DO 2 Accounts Receivable 5 Supplies + Prepaid Rent 9 10 5 Prepaid Insurance 11 12 6 Office Equipment Accumulated Depreciation $ Accounts Payable 15 14 9 Salaries Payable 15 10 Unearned Fees 16 11 Common Stock 17 12 Retained Earnings 18 15 Totals 19