Instructions For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, 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 1 Paid two months' rent on a lease rental contract, $4,800 2 Paid the premiums on property and casualty insurance policies, $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 office equipment on account from Office Station Co., $6,500 6 Received cash from clients on account, $15,100 10 Paid cash for a newspaper advertisement, 5400 12 Paid Office Station Co. for part of the debt incurred on July 5, $5,200 12 Recorded services provided on account for the period July 1-12, $13,300 14 Paid receptionist for two weeks' salary, $1,700 Jul. 17 18 Record the following transactions on Page 2 of the journal: Recorded cash from cash clients for fees earned during the period July 1-17, $9,450. Paid cash for supplies, $600. 20 Recorded services provided on account for the period July 13-20, $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 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 (1) Unearned fees on July 31 are $2,500 A 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, 2012 C Prepare a balance sheet as of July 31, 2012 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 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 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, 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 General Journal 1. Journalize each transaction in a two-column journal starting on Page 1. (Do not insert the account numbers in the journal at this time) General Journal Instructions Note: Scroll down to access pages 2 through 4 of the journal 10 11 12 DATE DESCRIPTION Check My Work JOURNAL PAGE 1 ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY nstructions Chart of Accounts Labels and Amount Descriptions Work Sheet General Journal General Ledger Un eneral Journal 10 11 12 = 15 14 15 16 17 18 = 29 " 20 21 21 21 DATE DESCRIPTION Check My Work I PAGE 2 ACCOUNTING EQUATION JOURNAL POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY General Journal 2 10 11 12 11 14 11 DATE DESCRIPTION 16 17 " JOURNAL PAGE 2 ACCOUNTING EQUATION POST REF CREDIT ASSETS LIABILITIES EQUITY 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31 11 12 11 DESCRIPTION JOURNAL DATE Adjusting Entries PAGE 3 ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 9. A. Journalize the closing entries on page 4 of the journal 10 11 DATE DESCRIPTION Closing Entries JOURNAL I PAGE 4 ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY General Ledger 2. Post the journal to a ledger of four-column accounts. Add the appropriate posting reference to the journal 6. B. Post the adjusting entries, inserting balances in the accounts affected. 9. B. Post the closing entries, inserting balances in the accounts affected General Ledger Instructions Account: Cash Account: Accounts Receivable Account: Supplies DATE Account: Prepaid Rent Account: Prepaid Insurance Account: Office Equipment Account: Accumulated Depreciation Account: Accounts Payable Account: Salaries Payable Account: Unearned Fees Account: Common Stock Account: Retained Earnings Account: Dividends Account: Fees Earned Account: Salary Expense Art Pank Finance Check My Work LEDGER Account No. 11 Account No. 12 Account No. 14 BALANCE ITEM POST REF DEBIT CREDIT DEBIT CREDIT Account No. 15 Account No. 16 Account No. 18 Account No. 19 Account No. 21 Account No. 22 Account No. 23 Account No. 31 Account No. 32 Account No. 33 Account No. 41 Account No. 51 Arront U53 Account: Prepaid Rent Account: Prepaid Insurance Account: Office Equipment Account: Accumulated Depreciation Account: Accounts Payable Account: Salaries Payable Account: Unearned Fees Account: Common Stock Account: Retained Earnings Account: Dividends Account: Fees Earned Account: Salary Expense Account: Rent Expense Account: Supplies Expense Account: Depreciation Expense Accounts Insurance Expense Account: Miscelaneous Expense A Account No. 15 Account No. 16 Account No. 18 Account No. 19 Account No. 21 Account No. 22 Account No. 23 Account No. 31 Account No. 32 Account No. 33 Account No. 41 Account No. 51 Account No. 52 Account No. 53 Account No. 54 Account No. 55 Account No. 59 Chart of Accounts Labels and Amount Descriptions Unadjusted Trial Balance 3. Prepare an unadjusted trial balance d Diamond Consulting UNADJUSTED TRIAL BALANCE July 31, 2012 ACCOUNT TITLE 1 Cash 2 Accounts Receivable 3 Supplies * Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation 3 Accounts Payable Salaries Payable I 10 Unearned Fees 11 Common Stock # S 12 Retained Earnings R13 Dividends S 14 Fees Earned 15 Salary Expense 16 Dant Fynance Work Sheet DEBIT CREDIT 7 Accumulated Depreciation 8 Accounts Payable 9 Salaries Payable t: R 10 Unearned Fees nt: P nt: C 11 Common Stock unt: A 12 Retained Earnings unt: A 13 Dividends bunt: S 14 Fees Earned ount: L Count: C 15 Salary Expense count: R 16 Rent Expense count: D 17 Supplies Expense ccount: F ccount: S 18 Depreciation Expense Account: R 19 Insurance Expense Account: S 20 Miscellaneous Expense Account: D Account: 1 21 Totals My Work 00 Adjusted Trial Balance 7. Prepare an adjusted trial balance. 1 Cash 1 2 Accounts Receivable 2 3 Supplies 3 4 Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation Accounts Payable 9 Salaries Payable 10 Unearned Fees 10 11 Common Stock 11 12 12 Retained Earnings 13 Dividends 13 14 Fees Eamed 14 15 15 Salary Expense 16 16 Rent Expense Diamond Consulting ADJUSTED TRIAL BALANCE July 31, 2012 ACCOUNT TITLE DEBIT CREDIT 14 Fees Earned 10 15 Salary Expense 11 16 Rent Expense 12 17 Supplies Expense S 13 18 Depreciation Expense 14 19 Insurance Expense 15 20 Miscellaneous Expense 16 21 Totals D t: F 8A. Prepare an income statement for the month ended July 31, 2012. Income Statement Instructions 1 2 (Label) 3 10 Diamond Consulting Income Statement (Label) Statement of Stockholders' Equity 88 Prepare a statement of stockholders' equity for the month ended July 31, 20Y2 Statement of Stocki ders' Equity Instructions Diamond Consulting Statement of Stockholders' Equity (Label) Retained Common Stock Total Earnings Balance Sheet 8C. Prepare a balance sheet as of July 31, 20Y2 Balance Sheet Instructions 2 (Label) Assets Diamond Consulting Balance Sheet (Label) 4 5 10 11 12 15 Liabilities 13 14 15 (Label) Liabilities 16 10 17 18 19 10 20 21 22 23 24 Stockholders' Equity I Post-closing Trial Balance 10. Prepare a post-closing trial balance 1 Cash 2 Accounts Receivable 3 Supplies Diamond Consulting POST-CLOSING TRIAL BALANCE July 31, 20Y2 ACCOUNT TITLE 4 Prepaid Rent Prepaid Insurance Office Equipment 7 Accumulated Depreciation Accounts Payable Salaries Payable 10 Unearned Fees 11 Common Stock 12 Retained Earnings 13 Totals DEBIT CREDIT