Instructions Chart of Accounts Labels and Amount Descriptions Work Sheet Instructions For the past several years. Steffy Lopez has operated a part-time consulting business from his home. As of July 1. 2012. Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July Jul. 1 The following assets were received from Steffy Lopez in exchange for common stock cash. $14,000: accounts receivable, $20.800; supplies, $3, 100; and office equipment. $7,500. There were no liabilities received. Paid two months' rent on a lease rental contract. $4,800 1 2 Paid the premiums on property and casualty insurance policies, $4,620. 10 Naa 12 12 4 5 Received cash from dients as an advance payment for services to be provided, and recorded it as unearned fees, $5,000. Purchased additional office equipment on account from Office Station Co., $8,500. Received cash from clients on account. $15,100. 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 14 Paid receptionist for two weeks' salary. $1,700. Record the following transactions on Page 2 of the journal 17 4 18 20 24 Recorded cash from cash clients for fees earned during the period July 1-17. 50.450. Paid cash for supplies. $600. Recorded services provided on account for the period July 13-20, $6,750 Recorded cash from cash clients for fees earned for the period July 17-24, $4,000. 20 Received cash from dients on account, $12,000. 27 Paid receptionist for two weeks' salary, $1,700 29 &&& 5 5 5 5 31 Paid telephone bill for July. $325 Paid electricity bill for July. $875 31 Recorded cash from cash clients for fees earned for the period July 25-31, $5,400 31 31 Recorded services provided on account for the remainder of July, $3,000 Paid dividends, $12.500. 31 Paid dividends, $12,500. Required: 1. Journalize each transaction in a two-column joumal 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 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 $1,525 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. Uneamed fees eamed on July 31, $2,250 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. Joumalize 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 for 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 July 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, 2012. Be sure to complete the statement heading Fixed assets must be entered in order according to account number Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. 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 9. A. Joumalize the closing entries on page 4 of the joumal Refer to the Chart of Accounts for exact wording of account bles B. Post the closing entries, inserting balances in the accounts affected. Leave the ITEM column BLANK for each row if the account balance is zero (0) after closing entries are posted enter a zero (0) in the account's normal balance column 10. Prepare a post-closing trial balance