For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2042, Steffy decided to m a entered into the following transactions during July Jul 1 The following assets were received from Stetty Lopez in exchange for common stock: cash, $12,500 accounts receivable, $20,800, supplies, $3,100; and office equipment, $7,500. There were no liabilities received 1 2 Paid two months' rent on a lease rental contract, 54,800 Paid the premiums on property and casualty Insurance policies, $4,500. Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees $5,500 4 5 Purchased additional office equipment on account from Office Station Co., $6,500 6 Received cash from clients on account. $15,300, 10 12 Paid cash for a newspaper advertisement$400 Paid Office Station Co for part of the debt incurred on July 5 $5.200. Recorded services provided on account for the period July 1-12. $13,300 Paid receptionist for two weeks salary, 51.700 12 14 Record the following transactions on Page 2 of the journal Jul 17 Recorded cash from cash clients for rees eamed during the period July 1-17 59.450 18 20 Paid cash for supplies, S600 Recorded services provided on account for the period July 13-20. 56.650 Recorded cash from cash clients for tees eamed for the period July 17-24. 55.000 24 26 Received cash from clients on account S12.000 27 29 Paid receptionist for two weeks salary$1.700 Paid telephone bill for July $400 Pald electricity bill for Jul. 5675 31 4 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 journal to a ledger of four-column accounts. Add the appropriate posting reference to the journal 3. Prepare an unadjusted trial balance. At the end of July, the following adjustment data were assembled Analyze and use these data to complete requirements (5) and (6). A Insurance expired during July is $375 B. Supplies on hand on July 31 are $1,550, C. Depreciation of office equipment for July is 5750 D. Accrued receptionist salary on July 31 is $170. E Rent expired during July is $2,400. F. Unearned fees earned on July 31, $2,000 5. (Optional) on your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work s 6. A Journalize the adjusting entries on page 3 of the journal Adjusting entries are recorded on July 31. Refer to the Chart of Accounts for exact wording of account titles, B. Post the adjusting entries, inserting balances in the accounts affected 7. Prepare an adjusted trial balance 8 A Prepare an income statement for the month ended July 31, 2012 Be sure to complete the statement heading If a net loss has been incurred, enter that amount as a negative number using a minus sign Refer to the accounts, Labels and Amount Descriptions provided the exact wording of the answer choices for text entries. You will not need to enter colons () on the income statement B. Prepare a statement of stockholders' equity for the month ended Juiy 31, 2012 Be sure to complete the statement heading. Negative amount should be indicated by the minus sign Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If an amount is zero enter 0 C Prepare a balance sheet as of July 31 2072. Be sure to complete the statement heading Fixed assets must be entered in order accordin to account number. Refer to the Accounts Labels and Amount Descriptions provided for the exact wording or the answer choices for text entres. You will not need to enter colons () or the word "Less on the balance sheet they will automatically insert where necessary Negative amount should be indicated by the minus sign A Journalize the closing entries on page 4 of the journal. Refer to the Chart of Accounts for exact wording of account titles B. Post the closing entries, inserting balances in the accounts affected Leave the ITEM column BLANK for each row. If the account balance 15 zero (O) after closing entries are posted, enter a zero (O) in the account's normal balance column. 10. Prepare a post-closing tnal balance 9 CHART OF ACCOUNTS Diamond Consulting General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 56 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned 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, 2012 Property, plant, and equipment Revenues Amount Descriptions Balances, July 1, 20Y2 Balances, July 31 2042 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 JOURNAL Score: 282/310 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITES EQUITY 1 Jul. 1 Cash 12,500.00 2 Accounts Receivable 20,800.00 1 3.100.00 Supplies Office Equipment 1 7.500.00 1 Common Stock Jul 1 Prepaid Rent 4,800.00 Casti 4.800.00 1 JUL 2 Prepaid Insurance 4,500.00 1 Cash 4.500.00 1 10 JULA Cash 5,500.00 1 Unearned Fees 5.500.00 12 MS Office Equipment 6,500.00 Accounts Payable 6,500.00 3 JUL 6 Cach 15.300.00 1 I 15 Accounts Receivable 15.500.00 16 Jul 10 Miscellaneous Expense 400.00 17 Cash 400.00 . 11 Jul 12 Accounts Payable 5.200.00 15 Cash 5.200,00 . Jol. 12 Accounts Receivable 13,500.00 1 21 Fees Earned 13,500.00 22 JUL 14 Salary Expense 1.700,00 Gach 1.700.00 PAGE 2 JOURNAL Score: 0/298 ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEET CREDIT ASSETS LIABILITIES EQUITY 1 2 20 12 13 14 13 16 11 11 15 30 23 20 PAGE JOURNAL Score: 97/163 ACCOUNTING EQUATION DATE POST REE DEBIT CREDIT ASSETS DUTIES EQUITY DESCRIPTION Adjusting Entries Jul 31 Insurance Experise 3 Prepaid Insurance 31 Supplies Expense Supplies 31 Depreciation Expense Accumulated Depreciation 31" Salary Expense Salaries Payable 10 31 Rent Expense 11 Prepaid Rent 1 31 Uneamed Feet Fees Eamed PAGE 4 JOURNAL Score: 12/133 ACCOUNTING EQUATION DATE POST. REF DEBIT CREDIT ASSETS CAUTIES EQUITY DESCRIPTION Closing Entries 2 3 Fees Earned 1 Salary Expense 3 9 Question not attentod. LEDGER Account: Cash Score: 0/821 Account No. 11 DIATE IT POST REE DEBIT CEEDIT LALANCE DERIT CREDIT . 1 Account Accounts Receivable Account No. 12 DATE ITEM POST: REF DEBIT CREDIT BALANCE DEBIT CREDIT Account Supplies Account No. 14 DATE ITEM POST REF DELIT BALANCE CREDIT DEEIT CREDIT Account: Prepaid Rent Account No. 15 DATE ITEM POST DERIT LALUCE CREDIT DET 1 2 Accounts Prepaid murance Account No 10 DATE CH POSTE OLET CREDIT CE DET COT Account Office Equipment Accounts DATE ITE ROST BE DEBIT CHEDE BALANCE DET CAO Account Office Equipment Account No. 10 BALANCE DATE ITEM POST REF DEBIT CREDIT DEBIT CREDIT 1 2 Account: Accumulated Depreciation Account No. 19 BALANCE DATE ITEM POST REF DEBIT CREDIT DEBIT CREDIT Account Accounts Payable Account No. 21 BALANCE DATE TEA POST RER DEBIT CREDIT DEBIT CREDIT 1 Account Salaries Payable Account No. 22 BALANCE DATE ITEM POSTRE DEE CREDIT DEBIT CREDIT 1 Account: Unearned Fees Account No. 23 DATE BALANCE ITEM POSTRO DEBIT CREDIT DEBIT CREDIT 1 Account Common Stock Account 31 DATE ITEM POST REY DEBIT CREDIT LALICE DEBIT CREDIT + Account Retained Earrings Account No. 32 DATE ITEM POSTS CEIT CREDIT LUCE CREDIT Account Retained Earnings Account No. 32 BALANCE DATE ITEM POST. REF DEBIT CREDIT DEBIT CREDIT 1 2 Account Dividends Account No. 33 BALANCE DATE ITEM POST REF DET CREDIT DEBIT CREDIT 2 2 Accounts Fees Earned Account No. 41 BALANCE DATE ITEM POST REF DEBIT CREDIT DESIT CREDIT 2 Account Salary Expense Account No. Si LANCE DATE ITEM POSTRO DET CREDIT ben CHE Account Rent Experte Account DATE ITEM POST. REF DEBIT BALANCE CREDIT GREDIT 1 2 Account: Supplies Expense Account No. 53 DATE ITEM POST REF DEBIT CUENT BILANCE DIT 1 1 Account Depreciation Expense Account 54 DATE ITEM POSTER DET CHET 1 2 Account Insurance Expense DATE ALANCE ITEM POST BY DOT BET 1 2 Account: Miscellaneous Expense DATE ITEM POSTER DET 1 1 Diamond Consulting Score: 0/62 UNADJUSTED TRIAL BALANCE July 31, 2012 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation 3 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 18 Depreciation Expense 19 Insurance Expense 20 Miscellaneous Expense 21 Totals Score: 0/80 Diamond Consulting ADJUSTED TRIAL BALANCE July 31, 2012 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Rent $ Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation 3 Accounts Payable 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 18 Depreciation Expense 19 Insurance Expense 20 Miscellaneous Expense 21 Totals Diamond Consulting Score: 47/85 Income Statement (Label) 1 Fees earned 7 Expenses: Salary expense 3 4 Miscellaneous expense 5 Insurance expense 6 Supplies expense Depreciation expense 2 8 Rent expense 9 10 Net income Diamond Consulting Score: 9/80 Statement of Stockholders' Equity (Label) Common Stock Retained Earnings Total 2 3 Net income 6 Balance Sheet ENGITTUTTOmeny Balance Sheet (Label) 1 Assets 2 Label) 3 Accounts receivable Supplies Prepaid rent 5 6 Prepaid insurance 7 8 10 9 (Label) Office equipment Less accumulated depreciation 11 12 1 14 Liabilities 15 (Label) 15 17 15 19 Stockholders' Equity 20 21 22 23 24 Diamond Consulting Score: 0/51 POST-CLOSING TRIAL BALANCE July 31, 20Y2 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 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 Totals