July 1 Purchased equipment, paying $3,200 cash and signing a 2-year note payable for $16,000. The equipment has a 4-year useful life. The note has a 6% interest rate which is payable on the first day of each following month 2 Issued 16,000 shares of common stock for $40,000 cash. 3 3 6 9 10 13 14 16 18 20 20 23 27 Paid $3,000 cash for a 12-month insurance policy effective July 1 Paid the first 2 (July and August 2017) months' rent for an annual lease of office space for $3,200 per month. Paid $3,000 for supplies. Visited client offices and agreed on the terms of a consulting project. Bridgeport will bill the client, Connor Productions, on the 20th of each month for services performed Collected $960 cash on account from Milani Brothers. This client was billed in June when Bridgeport performed the service Performed services for Fitzgerald Enterprises. This client paid $900 in advance last month. All services relating to this payment are now completed Paid $320 cash for a utility bill. This related to June utilities that were accrued at the end of June Met with a new client, Thunder Bay Technologies. Received $9,600 cash in advance for future services to be performed Paid semi-monthly salaries for $8,800 Performed services worth $22,400 on account and billed customers Received a bill for $1,800 for advertising services received during July. The amount is not due until August 15. Performed the first phase of the project for Thunder Bay Technologies. Recognized $8,000 of revenue from the cash advance received July 16 Received $12,000 cash from customers billed on July 20 Adjustment data 1. Adjustment of prepaid insurance 2. Adjustment of prepaid rent. 3. Supplies used, $1,000 4. Equipment depreciation, $400 per month. 5. Accrual of interest on note payable 6. Salaries for the second half of July, $8,800, to be paid on August 1 7. Estimated utilities expense for July, $640 (invoice will be received in August) 8. Income tax for July, $960, will be paid in August