Instructions x For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2018, 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 Consulting entered into the following transactions during July: Jul. 1 2 4 1 The following assets were received from Steffy Lopez in exchange for common stock: cash, $13,500; accounts receivable, 520,800; supplies, $3,200; and office equipment, $7,500. There were no liabilities received Paid two months' rent on a lease rental contract, 54,800. Paid the annual premiums on property and casualty insurance policies, $4,500. Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,500. Purchased additional office equipment on account from Office Station Co., $6,500. Received cash from clients on account, $15,300 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. Paid receptionist for two weeks' salary, $1,750 5 6 10 12 12 14 x Instructions Record the following transactions on Page 2 of the journal: Jul. 17 18 20 24 26 27 Recorded cash from cash clients for fees earned during the period July 1-17, 59,450. Paid cash for supplies, $600. Recorded services provided on account for the period July 13-20, S6,650. Recorded cash from cash clients for fees earned for the period July 17-24, $4,000. 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 fees earned for the period July 25-31, $5,200. Recorded services provided on account for the remainder of July, $3,000. Paid 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. A. Post the journal to a ledger of four-column accounts. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. B. Add the appropriate posting reference to the journal in CengageNOW. 3. Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank. 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. 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 $175. E. Rent expired during July is $2,400 F. Unearned fees on July 31 are $2,750. 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. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 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. C. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW. 7. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank. Chart of Accounts X CHART OF ACCOUNTS Diamond Consulting General Ledger REVENUE 41 Fees Earned EXPENSES ASSETS 11 Cash 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 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary Journal 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. B. Add the appropriate posting reference to the journal in CengageNOW. 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. 6. C. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW. Note: Scroll down to access pages 2 through 3 of the journal. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 Unadjusted Trial Balance X Adjusted Trial Balance 3. Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank. 7. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank. Diamond Consulting Diamond Consulting UNADJUSTED TRIAL BALANCE ADJUSTED TRIAL BALANCE July 31, 2018 July 31, 2018 ACCOUNT TITLE DEBIT CREDIT ACCOUNT TITLE DEBIT CREDIT 1 Cash 1 Cash 2 Accounts Receivable 2 Accounts Receivable 3 Supplies 3 Supplies - Prepaid Rent - Prepaid Rent 5 Prepaid Insurance 5 Prepaid Insurance 6 Office Equipment 6 Office Equipment 7 Accumulated Depreciation 7 Accumulated Depreciation 8 3 Accounts Payable Accounts Payable Salaries Payable 9 Salaries Payable 10 Unearned Fees 10 Unearned Fees 11 Common Stock 11 Common Stock 12 Retained Earnings 12 Retained Earnings 13 Dividends 13 Dividends 14 Fees Earned 14 Fees Earned