July 5 During its first month of operation, the Portor Services, Inc., which specializes in day porter services, comploted the following transactions. The first transaction (July 1) has been done for you as an example, July 1 Bogan businoss by making a doposit in a company bank account of $90,000, in exchange for common stock July 3 Paid the current month's rent, $5,500 Pald the premium on a 1-year insurance policy, $4,800 July 7 Purchased supplies on account from Little Company. $900. July 10 Paid employee wages, $3,300 July 14 Purchased equipment from Lake Company, $11,500. Paid $1,500 down and the balance was placed on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/1. Note: Use accounts payable for the balance due. July 15 Received cash for day porter revenue for the first half of July, $7,700 July 19 Made payment on account to Lake Company, $500 July 31 Received cash for service revenue for the last half of July, $8,505 July 31 Declared and paid cash dividends of $600 Prepare journal entries to record the July transactions in the Gene Use the following account names for journal entries. General Journal Chart of Accounts: Account Title Dato Description(Account Name) Debit Credit July 1 Cash 90,000 Assets Common Stock 90,000 Cesh Common Stock issued for cash Prepaid Insurance July 3 Supplies Equipment Accumulated Depreciation - Equipment July 5 Liabilities Accounts Payable July 7 Income Tax Payable Stockholders' Equity July 10 Common Stock Retained Earnings Dividends July 14 Revenue Service Revenue July 15 Expenses Rent Expense Salaries Expense July 19 Insurance Expense Supplies Expense Depreciation Experise July 31 Income Tax Expense July 31 90,000 90.000 Prepare a trial balance for July in the space below. Porter Services, Inc. Trial Balance July 31 Debit 90,005 Credit Cash (111) Prepaid Insurance (117) Supplies (119) Equipment (144) Accumulated Depreciation-Equipment (145) Accounts Payable (212) Income Tax Payable (213) Common Stock (311) Retained Earnings (312) Dividends (313) Revenue (411) Rent Expense (511) Salaries Expense (512) Insurance Expense (513) Supplies Expense (514) Depreciation Expense (515) Income Tax Expense (516) 90.000 90.005 90,000 Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month's insurance as expired. (See Journal Entry tab uy transaction) b) The training inventory of supplies is $375 (See Journal Entry tab "July 7 transaction) c) The estimated depreciation on equipment is $175 d) The estimated Income taxes are $3,200 for the past year (Assume this is the total income tax expense for the year and has not been recorded - need to accrue the full amount) General Journal Description (Account Name) Debit CO Date July 31 a) Insurance Policy / 12 months per month expiration per month July 31 D) Beginning Supplies Supplies Used Remaining Balance Supplies Used ily 31 July 31 Requirement 5 1 2 Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances 3 Just add to the balances that are already listed. This Sheet will be used for Requirements 2, 5, and 9. Requirement #5: Post the July journal entries to the following T-accounts and compute ending balances. Revenue (411) Cash (111) 90,000 7,700 8,505 7.700 8,505 5,500 4,800 3,300 1,500 500 600 16,205 90,005 Prepaid Insurance (117) 4,800 0 Rent Expense (511) 5,500 4,800 5,500 Supplies (119) 900 0 Salaries Expense (512) 3.300 900 3.300 Equipment (144) 115001 Insurance Expense (513)