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 $12,000 to pay the rent in advance for six months 1 Borrowed money from Second National Bank by issuing a four month, 12 percent note for $42,400 received $40,704 because the bank deducted the interest in advance 1 Signed an agreement with Carter Corp to provide accounting and tax services for one year at $5,200 per month received the entire fee of $62,400 in advance 1 Purchased office equipment for $23,000 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 $1,400 salvage value The equipment will be depreciated using the straight line method 1 Purchased a one year insurance policy and issued Check 102 for $1,704 to pay the entire premium 3 Purchased office furniture for $11,560 from Furniture Warehouse issued Check 103 for $8,460 and agreed to pay the balance in 60 days The equipment has an estimated useful life of four years and a $1,000 salvage value The office furniture will be depreciated using the straight line method 5 Purchased office supplies for $1,950 with Check 104 Assume $870 of supplies are on hand July 31, 2019 Required 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 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 Record the payment of rent Note Enter debits before credits Date General Journal Debit Credit Jul 01, 2019 Record the borrowing Note Enter debits before credits Date General Journal Debit Credit Jul 01, 2019 Record the fees received in advance Note Enter debits before credits Note Enter debits before credits Date General Journal Debit Credit Jul 01, 2019 Record the purchase of equipment Note Enter debits before credits Date General Journal Debit Credit Jul 01, 2019 Record the payment for insurance Note Enter debits before credits Note Enter debits before credits Date General Journal Debit Credit Jul 01, 2019 Record the purchase of furniture Note Enter debits before credits Date General Journal Debit Credit Jul 03, 2019 Record the purchase of supplies Note Enter debits before credits Date General Journal Debit Credit Jul 05, 2019

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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

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 $12,000 to pay the rent in advance for six months.
	1	Borrowed money from Second National Bank by issuing a four-month, 12 percent note for $42,400; received $40,704 because the bank deducted the interest in advance.
	1	Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $5,200 per month; received the entire fee of $62,400 in advance.
	1	Purchased office equipment for $23,000 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 $1,400 salvage value. The equipment will be depreciated using the straight-line method.
	1	Purchased a one-year insurance policy and issued Check 102 for $1,704 to pay the entire premium.
	3	Purchased office furniture for $11,560 from Furniture Warehouse; issued Check 103 for $8,460 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of four years and a $1,000 salvage value. The office furniture will be depreciated using the straight-line method.
	5	Purchased office supplies for $1,950 with Check 104. Assume $870 of supplies are on hand July 31, 2019.

Required:

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.

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?

Record the payment of rent.

Note: Enter debits before credits.