Instructions For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2012, Stefly 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 1 2. 4 The following assets were received from Stetty Lopez in exchange for common stock: cash, $13,500, accounts receivablo $20,800; supplies, 83.200; and office equipment, $7.500. There were no liabilities received Paid two months' rent on a torse rental contract, 84,800. Paid the premiums on property and casually insurance policies, $4,600. Received cash from clients as an advance payment for services to be provided, and recorded it as unoamned foos, $5,500 Purchased additional office equipment on account from Office Station Co. 56,500 8 Received cash from clients on account, $15,300. Pald cash for a newspaper advertisement, S600. Paid Office Station Co. for part of the debt incurred on July 6.85.200. Recorded services provided on account for the period July 1-12, 13,300 Pald receptionist for two weeks' salary, $1,750. 5 10 12 12 14 Record the following transactions on Page 2 of me jour Jut 17 Recorded cash from cash cents for fees camned during the period July 1-17, 59,450 Pad cash for volien 5000 16 Jul. 17 18 20 24 26 27 Recorded cash from cash clients for fees earned during the period July 1-17, 89,450. Pald cash for supplies, $600. Recorded services provided on account for the period July 13-20, $6,650. Recorded cash from cash clients for fees earned for the period July 17-24, 84,000. Received cash from clients on account, $12,000. Paid receptionist for two weeks' salary, $1,750. Paid telephone bill for July, $325. Paid electricity bill for July, 5675. Recorded cash from cash clients for foes earned for the perlod July 25-31, $5,200. Recorded services provided on account for the remainder of July, $3,000, Pald dividends, $12,500 29 31 31 31 31 Required: 1. Journalize each transaction in a two-column Journal 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 $375. 1 B. Supplies on hand on July 31 are $1,525, B. Supples on hand on July 31 are $1,525 C. Depreciation of office equipment for my is $750. D. Accrued receptionist salary on July 31 is $175 E Pont expired during July is $2.400. F. Uneamed foes on July 31 are $2,750 5. (Optional) On your own paper or spreadsheet, enter the unadhunted 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 joumal. 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 anded July 31, 20Y2. Be sure to complete the statement heading a not 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 choles for text entries. You will not need to enter colons () on the income statement B. Prepare a statement of stockholders' equity for the month anded July 3, 2012 Be sure to complete the statement heading, Negative amount should be indicated by the minus sign. Refer to the Accounts, Laws and Amount Descriptions provided for the exact wording of the answer choices for text entries. If an amount is zero, entero C. Prepare a balance sheet as of July 3, 2012. Be sure to complete the statement reading Red ants 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 centons C) or the word oor me antince shoot they will automatically insert where necessary Negative amount should be indicated by the musign Previous 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work shoot and complete the work sheet. 6. A. Journalize 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, 20Y2. Be sure to complete the statement heading. Il 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, 20Y2 Be sure to complete the statement heading. Negative amount should be indicated by the minus sign. Refer 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, 2072. 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 "Loss" on the balance sheet; they will automatically insert where necessary. Negative amount should be indicated by the minus sign. 9. A. Journalize the closing entries on page 4 of the journal. Refer to the Chart of Accounts for exact wording of account titles. 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. I 10. Prepare a post-closing trial balance. CHART OF ACCOUNTS Diamond Consulting General Ledger ASSETS REVENUE 41 Fees Earned 11 Cash EXPENSES 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 11 Cash 41 Fees Earned 12 Accounts Receivable EXPENSES 14 Supplies 15 Prepaid Rent 51 Salary Expense 52 Rent Expense 16 Prepaid Insurance 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends x 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, 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 Labels and Amount 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