For the past several years, Stetfy Lopez has operated a part-time consulting business from hils home. As of July 1, 20Y2, Stetty decided to move to rented quarters and to operate the business, which was to be known as Dlamond Consulting, on a fullimetime basis. Diamond entered into the following transactions during July: Jul. 1 The following assets were received trom Stelfy Lopez in exchange for common stock: cash, $14,000; acoounts recelvable, $20,800; supplies, $3,100; and office equipment, $7,500. Thece were no liabilties received. 1 Pald two months' rent on a lease rental contract, $4,800. 2 Paid the premiums on property and casualy insurance policios, $4,620. 4 Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,000 5. Purchased additional oflice equipment on acoount from Orfice Station Co,$6,600. 6 Peceived cash from clients on acoount, $15,100. 10. Paid cash for a newspaper advortisement, $400. 12. Paid Otfice Station Co. for part of the debt incurred on July 5,$5,200. 12. Recorded servicos provided on account for the period July 1-12, $13,300. 14 Paid receptionist for two weeks' salary, $1,700. Record the following transactions on Page 2 of the journal: Jul. 17 Recorded cash from cash clients for fees earned during the period July 117,$9,450. 18 Paid cash for supplies, $600. 20 Recorded services provided on account for the period July 1320,$6,750. 24 Recorded cash from cash clients for fees earned for the period July 17-24, $4,000. 26 Received cash from clients on account, $12,000. 27 Paid receptionist for two weeks' salary, $1,700. 29 Paid telephone bill for July, $325. 31 Paid electricity bill for July, $675. 31 Recorded cash from cash clients for fees earned for the period July 25-31, $5,400. 31 Recorded services provided on account for the remainder of July, $3,000. 31 Paid dividends, $12,500. Required: 1. Journalize each transaction in a two-column journal starting on Page 1. (Do not insert the account numbers in the joumal at this time.) 2. Post the joumal to a ledger of four-column accounts. Add the appropriate posting roference to the joumal. 3. Propare an unadjusted trial balance. 4. At the end of July, the following adjustment data were assembiod. 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 $1,525. (c) Depreciation of otfice equipment for July is $750. (d) Accrued receptionist salary on July 31 is $170. (e) Rent expired during July is $2,400. (f) Uneamed fees on July 31 are $2,500. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-or-period work sheet and complete the work she 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded an 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 31,20Y2. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end- 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded 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 31,20Y2. C. Prepare a balance sheet as of July 31,20Y. 9. A. Journalize the closing entries on page 4 of the journal. B. Post the closing entries, inserting balances in the accounts affected. 10. Prepare a post-closing trial balance. Chart of Accounts 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 55 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable Chart of Accounts 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 55 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 and Amount Descriptions Labels Current assets Current liabilities Expenses For the Month Ended July 31, 20Y2 July 31,20 Y2 Property, plant, and equipment Revenues Amount Descriptions Balances, July 1, 20Y2 Balances, July 31,20 Y2 Dividends Issued common stock Net income Net loss Total assets Labels and Amount Descriptions 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 1. Joumalize each transaction in a two-column joumal starting on Page 1. (Do not insert the account numbers in the journal at this time.) General Joumal instructions Note: Scroll down to access pages 2 through 4 of the journal. 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31 . 9. A. Journalize the closing entries on page 4 of the journal. 2. Post the journal to a ledger of four-column acoounts. Add the appropriate posting referonce to tho journal. 6. B. Post the adjusting antries, inserting balances in the accounts affecteo 9. B. Post the closing entrips, inserting balances in the accounts affected. 3. Prepare an unadjusted trial balance. 8 more Check My Work uses remaining. 7. Prepare an adjusted trial balance. 8A. Prepare an income statement for the month ended July 31,20 Y2. Income Statement Instructions Statement of Stockholders' Equity 88. Prepare a statement of stockholders' equity for the month ended July 31,20Y2. Statement of Stockholders' Equity Instructions 8C. Prepare a balance sheet as of July 31,20 Y2. Balance Sheet Instructions 10. Prepare a post-closing trial balance. For the past several years, Stetfy Lopez has operated a part-time consulting business from hils home. As of July 1, 20Y2, Stetty decided to move to rented quarters and to operate the business, which was to be known as Dlamond Consulting, on a fullimetime basis. Diamond entered into the following transactions during July: Jul. 1 The following assets were received trom Stelfy Lopez in exchange for common stock: cash, $14,000; acoounts recelvable, $20,800; supplies, $3,100; and office equipment, $7,500. Thece were no liabilties received. 1 Pald two months' rent on a lease rental contract, $4,800. 2 Paid the premiums on property and casualy insurance policios, $4,620. 4 Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,000 5. Purchased additional oflice equipment on acoount from Orfice Station Co,$6,600. 6 Peceived cash from clients on acoount, $15,100. 10. Paid cash for a newspaper advortisement, $400. 12. Paid Otfice Station Co. for part of the debt incurred on July 5,$5,200. 12. Recorded servicos provided on account for the period July 1-12, $13,300. 14 Paid receptionist for two weeks' salary, $1,700. Record the following transactions on Page 2 of the journal: Jul. 17 Recorded cash from cash clients for fees earned during the period July 117,$9,450. 18 Paid cash for supplies, $600. 20 Recorded services provided on account for the period July 1320,$6,750. 24 Recorded cash from cash clients for fees earned for the period July 17-24, $4,000. 26 Received cash from clients on account, $12,000. 27 Paid receptionist for two weeks' salary, $1,700. 29 Paid telephone bill for July, $325. 31 Paid electricity bill for July, $675. 31 Recorded cash from cash clients for fees earned for the period July 25-31, $5,400. 31 Recorded services provided on account for the remainder of July, $3,000. 31 Paid dividends, $12,500. Required: 1. Journalize each transaction in a two-column journal starting on Page 1. (Do not insert the account numbers in the joumal at this time.) 2. Post the joumal to a ledger of four-column accounts. Add the appropriate posting roference to the joumal. 3. Propare an unadjusted trial balance. 4. At the end of July, the following adjustment data were assembiod. 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 $1,525. (c) Depreciation of otfice equipment for July is $750. (d) Accrued receptionist salary on July 31 is $170. (e) Rent expired during July is $2,400. (f) Uneamed fees on July 31 are $2,500. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-or-period work sheet and complete the work she 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded an 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 31,20Y2. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end- 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded 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 31,20Y2. C. Prepare a balance sheet as of July 31,20Y. 9. A. Journalize the closing entries on page 4 of the journal. B. Post the closing entries, inserting balances in the accounts affected. 10. Prepare a post-closing trial balance. Chart of Accounts 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 55 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable Chart of Accounts 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 55 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 and Amount Descriptions Labels Current assets Current liabilities Expenses For the Month Ended July 31, 20Y2 July 31,20 Y2 Property, plant, and equipment Revenues Amount Descriptions Balances, July 1, 20Y2 Balances, July 31,20 Y2 Dividends Issued common stock Net income Net loss Total assets Labels and Amount Descriptions 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 1. Joumalize each transaction in a two-column joumal starting on Page 1. (Do not insert the account numbers in the journal at this time.) General Joumal instructions Note: Scroll down to access pages 2 through 4 of the journal. 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31 . 9. A. Journalize the closing entries on page 4 of the journal. 2. Post the journal to a ledger of four-column acoounts. Add the appropriate posting referonce to tho journal. 6. B. Post the adjusting antries, inserting balances in the accounts affecteo 9. B. Post the closing entrips, inserting balances in the accounts affected. 3. Prepare an unadjusted trial balance. 8 more Check My Work uses remaining. 7. Prepare an adjusted trial balance. 8A. Prepare an income statement for the month ended July 31,20 Y2. Income Statement Instructions Statement of Stockholders' Equity 88. Prepare a statement of stockholders' equity for the month ended July 31,20Y2. Statement of Stockholders' Equity Instructions 8C. Prepare a balance sheet as of July 31,20 Y2. Balance Sheet Instructions 10. Prepare a post-closing trial balance