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For the past several years, Steffy Lopez has operated a part - time consulting business from his home. As of July 1 , 2 0
For the past several years, Steffy Lopez has operated a parttime consulting business from his home. As of July Y Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a fulltime basis. Diamond entered into the following transactions during July:
Jul. The following assets were received from Steffy Lopez in exchange for common stock: cash, $; accounts receivable, $; supplies, $; and office equipment, $ There were no liabilities received.
Paid two months rent on a lease rental contract, $
Paid the premiums on property and casualty insurance policies, $
Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $
Purchased additional office equipment on account from Office Station Co $
Received cash from clients on account, $
Paid cash for a newspaper advertisement, $
Paid Office Station Co for part of the debt incurred on July $
Recorded services provided on account for the period July $
Paid receptionist for two weeks salary, $
Record the following transactions on Page of the journal:
Jul Recorded cash from cash clients for fees earned during the period July $
Paid cash for supplies, $
Recorded services provided on account for the period July $
Recorded cash from cash clients for fees earned for the period July $
Received cash from clients on account, $
Paid receptionist for two weeks salary, $
Paid telephone bill for July, $Paid electricity bill for July, $
Recorded cash from cash clients for fees earned for the period July $
Recorded services provided on account for the remainder of July, $
Paid dividends, $
Required:
Journalize each transaction in a twocolumn journal starting on Page Do not insert the account numbers in the journal at this time.
Post the journal to a ledger of fourcolumn accounts. Add the appropriate posting reference to the journal.
Prepare an unadjusted trial balance.
At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements and
aInsurance expired during July is $
bSupplies on hand on July are $
cDepreciation of office equipment for July is $
dAccrued receptionist salary on July is $
eRent expired during July is $
fUnearned fees on July are $
Optional On your own paper or spreadsheet, enter the unadjusted trial balance on an endofperiod work sheet and complete the work sheet.
AJournalize the adjusting entries on page of the journal. Adjusting entries are recorded on July
B Post the adjusting entries, inserting balances in the accounts affected.
Prepare an adjusted trial balance.
A Prepare an income statement for the month ended July Y
BPrepare a statement of stockholders equity for the month ended July YCPrepare a balance sheet as of July Y
AJournalize the closing entries on page of the journal.
BPost the closing entries, inserting balances in the accounts affected.
Prepare a postclosing trial balance.
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