For the past several years, Stefly Lopez has operated a part-time consulting business from his home. As of July 1, 20V2. Stetly decided to move to rented quarters and to operate the businoss. which was to be known as Diamond Consulting, on a full-time basis. Dlamond entered into the tollowing transactions during July: Jul. 1 The following assets were received from Stefly Lopez in exchange for common stock: cash, \$12,500; accounts receivable, $20,800; supplies, $3,100; and office equipment, $7,500. There were no labilities received. 1 Paid two months' rent on a lease rental contract, $4,800. 2 Paid the premiums on property and casuaity insurance policies, $4,630. 4 Peceived cash from clients as an advance payment for services to be provided, and rocorded it as uneamed fees, $5,000. 5 Puechased additional office equipment on account from Office Station Co., $6,500 6 Peceived cash from clients on account, $15,100. 10 Paid cash for a newspaper advertisement, $500. 12 Paid Otice Station Ca. for part of the debt incurred on July 5, 55,200. 12 Pecoeded services provided on account for the period July 112, $13,300 14 Paid receptionist for two weeks' salary, $1,700. Record the following transactions on Page 2 of the joumat: Jul. 17 Recorded cash from cash clients for fees earned during the period July 117,$9,450. 18 Paid cash for supplies, $600. 20. Pecorded services provided on account for the period July 13-20. $6.650 24. Pecorded cash from cash clients for fees eamed for the period July 1724,35,000. 26 Received cash from clients on account. $12,000. 27 Paid receptionist for two weeks' salary, $1,700. 29 Paid telephone bill for July, $300. 31 Paid olectricily bill for July, $675. 31 Pecorded cash from cash clients for fees earned for the period July 25 31,55,400. 31 Pecorded services provided on account for the remainder of July. $3.000 31 Paid dividends, 512,500 . 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. 4. 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 $385. (b) Supplies on hand on July 31 are $1,550. (c) Depreciation of office equipment for July is $750. (d) Accrued receptionist salary on July 31 is $170. (e) Rent expired during July is $2,400. (f) Unearned fees on July 31 are $2,500. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet. 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. 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, 20Y2. B. Prepare a statement of stockholders' equity for the month ended July 31, 20 Y2. C. Prepare a balance sheet as of July 31, 20Y2. 9. A. Journalize the closing entries on page 4 of the journal. B. Post the closing entries, inserting balances in the accounts affected. Chart of Accounts CHART OF ACCOUNTS Diamond Consulting General Ledger ASSETS 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees REVENUE 41 Fees Earned EXPENSES 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Labels and Amount Descriptions 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, 20 Y2 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