On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow. DATE TRANSACTIONS July 1 Signed a lease for an office and issued Check 101 for $14,700 to pay the rent in advance for six months. 1 Borrowed money from Second National Bank by issuing a four-month, 9 percent note for $40,000; received $38,800 because the bank deducted the interest in advance. Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $7,000 per month; received the entire fee of $84,000 in advance. 1 Purchased office equipment for $15,900 from Office Outfitters, issued a two-month, 12 percent note in payment. The equipment is estimated to have a useful life of five years and a $1,500 salvage value. The equipment will be depreciated using the straight-line method. 1 Purchased a one-year insurance policy and issued Check 102 for $1,740 to pay the entire premium. 3 Purchased office furniture for $16,080 from Furniture Warehouse; issued Check 103 for $8,480 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of four years and a $1,200 salvage value. The office furniture will be depreciated using the straight-line method. 5 Purchased office supplies for $2,010 with check 104. Assume $900 of supplies are on hand July 31, 2019. Required: 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 2019. 2. Record the adjusting journal entries that must be made on July 31, 2019 Analyze: What balance should be reflected in Unearned Accounting Fees at July 31, 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 2019. View transaction list Journal entry worksheet 2 3 4 5 6 7 Record the payment of rent. Note: Enter debits before credits. Date General Journal Debit Credit Jul 01, 2019 Record entry Clear entry View general journal Required 1 Required 2 Analyze Record the adjusting journal entries that must be made on July 31, 2019. View transaction list Journal entry worksheet