Instructions: This practice problem is related to chapters 1-3, ensure you refer to those chapters as you are completing the required steps. Also, please note that any incomplete work will not be accepted, and it will automatically receive zero points. Please note that this problem must be manually done, and when completing this practical problem; you need to use the attached work-sheets. Do not change the formatting of the worksheets or create your own as they will not be accepted. Problem Data Linda Trammel opened Alie Computer Repair, Inc. on July 1, 2019. During July, the following transactions took place. July 1 Issued $70,000 of common stock for $70,000 cash. 2 Purchased equipment for $30,000, paying $5,000 cash and the balance on a 3 year note payable. 2 Paid $4,800 cash on a 12-month insurance policy effective July 1, 2019. 3 Paid $2,500 cash for July's rent. 5 Purchased repair supplies for $3,500 on account. 16 Paid $3,000 cash for employees' salaries for July 1 - 15. 17 Received $7,500 from customer for repair services provided in the 1st half of July. 18 Billed customer $2,500 for repair services performed in July. 18 Received $2,500 for computer repair services to be performed in August. 28 Paid the telephone bill for the month of July in the amount of $500. 29 Collected $1,500 cash from customers billed on July 18. 31 Paid $3,500 cash on amount owed on the repair supplies purchased on July 5. 31 Received $7,000 from customer for repair service provided during the 2nd half of July. 30 Declared and paid a $,1000 cash dividend. 31 Received the utility for the month of July for $700. The bill will be paid in August. The following is a list of the general ledger accounts that are utilized by Alie Computer Repair, Inc.: Account Number 101 110 120 121 Account Title Cash Account Receivable Repair Supplies Prepaid Insurance Page 1 130 131 201 205 210 215 250 301 302 350 351 401 501 502 504 Equipment Accumulated Depreciation - Equipment Accounts Payable Unearned Repair Revenue Salaries Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Income Summary Repair Revenue Telephone Expense Rent Expense Repair Supplies Expense Depreciation Expense - Equipment Insurance Expense Utilities Expense Salaries Expense Interest Expense 508 511 512 516 520 Adjustment Data Depreciation on equipment is calculated at $5,500 per year. (prorate 12 year) One month of the insurance has expired. An inventory count shows $1,400 of repair supplies on hand at July 31. Accrued (unpaid) employee salaries for July 16 31 were $3,000. Interest on the note payable is 12% per year. Repair revenue of $1,500 has been performed but has not yet been billed to not received from the client. nimitrio Steps To Perform 1. Using the attached worksheets (Page "GJ1") journalize the July transactions that occurred from July 1 - July 31. Make sure you leave a blank line after each journal entry. Post the July transactions (journal entries) from step #1 to the general ledger in the worksheets (Page GL"). Prepare an unadjusted trial balance using (Page "UnAd-TB). Journalize the July adjusting entries using (Page "ADJ). Post the adjusting entries from step #4 to the general ledger using (Page "GL). Prepare an adjusted trial balance using (page Adj-TB). Prepare: A. A single-step income statement using (Page "Financial Statements). B. A statement of retained earnings (Page "Financial Statements). C. A classified balance sheet (Page "Financial Statements). 8. Journalize the closing entries using (Page Closing"). Post the closing entries using (Page "GL)
