general journal- adjusting entries

Equipment: Additional Information The $48,000 beginning balance in the Equipment account relates to equipment which was purchased on January 2, 2018 At that time, Connie's estimated: - the equipment would last for four years (48 months) - at the end of the four years, the equipment would have no future value and would be scrapped. The following information relates to the new equipment which was purchased on July 1, 2019. - The new equipment was placed into service on July 1, 2019 and should be depreciated for the month of July. - The estimated useful life of the new equipment is 5 years. - At the end of 5 years, the new equipment will have no future value and will be scrapped. - The new equipment will be depreciated using the straight-line method. Supplies: At the end of July there are $28,250 supplies on-hand. Consulting Service: On April 1, Connie's signed a contract to perform services for a new customer. The contract stipulates that Connie's will be paid an $8,000 monthly fee for the consulting services. As part of the contract agreement, the customer agrees to pay the first four months of services in advance; thus Connie's received $32,000 cash on April 1. Connie's put the credit to Unearned Revenue. At the end of April, May and June, Connie's recognized the $8,000 of consulting revenue earned. The monthly consulting service was provided per the contract for July 2019. Wages Due The last wage payment was made to the employees on July 28, 2019. The employees the worked on July 29, 30, and 31. For these three days of work the employees earned $3,075 of Employees: wages. These three days of wages will be paid to the workers during the first week of August. Consulting Service: On April 1, Connie's signed a contract to perform services for a new customer. The contract stipulates that Connie's will be paid an $8,000 monthly fee for the consulting services. As part of the contract agreement, the customer agrees to pay the first four months of services in advance; thus Connie's received $32,000 cash on April 1. Connie's put the credit to Unearned Revenue. At the end of April, May and June, Connie's recognized the $8,000 of consulting revenue earned. The monthly consulting service was provided per the contract for July 2019. Wages Due the Employees: The last wage payment was made to the employees on July 28, 2019. The employees worked on July 29, 30, and 31. For these three days of work the employees earned $3,075 of wages. These three days of wages will be paid to the workers during the first week of August. Bank Loan The interest on the loan from 1st Bank will be paid every three months. The first interest payment to the bank will be made on September 30, 2019. On July 31 the bank indicates that the interest on the loan for July is $830. July 2019 Transactions Description of the Transaction Date July 1 Borrow $35,000 from 1st Bank by signing a 24 month note. July 1 Invest $65,900 cash into the business. July 1 Purchase $34,500 of new computer equipment, paying cash. July 1 Pay $500 cash for the July office rental. July 3 Invoice a new customer $3,450 for a completed job-customer will pay in 10 days. July 5 Take a withdrawal of $26,000 cash. July 10 Complete a job for a new customer-customer pays $1,315 cash for the job. July 12 Collect $3,500 cash for a special rush job completed on May 31. July 14 Pay the employees $11,500 for work performed during the first 2 weeks of July. July 15 Purchase $880 of supplies. The supplies are consumed immediately. Connie's will pay for the supplies in about 2 weeks. July 15 Collect $3,450 on account. The cash that is received is from the new customer for the job that was completed on July 3. July 17 One of the original computers purchased in January of 2018 needed repair. The cost of the repair is $915. Connie's will pay for the service in 30 days. July 19 Purchase for cash $31,000 of supplies. These supplies will be consumed over the next 12 months. July 20 Collect $30,000 for work performed and invoiced in June. July 23 Receive an advance payment of $21,750 for consulting work to be performed from August 1, 2019 to January 31, 2020. July 25 Complete a consulting job; the total price for the work is $7,250. The customer pays $1,000 cash on this date and will pay the remainder on August 25. July 27 Pay $880 cash for the supplies purchased on July 15. July 28 Pay the employees $10,150 for work performed for the last 2 weeks of July. July 31 Invoice a client for $24,000 of work performed in July. The invoice will be paid on the 20th of next month