On July 1, 20x1, Tim Stein established his own Financial Services Selected transactions for the first few days of July follow. DATE TRANSACTIONS 2exi July 1 signed a lease for an office and issued Check 101 for $11,85e 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 $52, eee; received $58,448 because the bank deducted the interest in advance. 1 signed an agreement with Carter Corp. to provide financial services for one year at $5,100 per month; received the entire fee of $61,200 in advance. The $61,200 was credited to Unearned Financial Service Fees. 1 Purchased office equipment for $20, 4ee from Office Outfitters; issued a two-month, 9 percent note in payment. The equipment is estimated to have a useful life of four years and a $2,168 salvage value. The equipment will be depreciated using the straight-line method. 1 Purchased a one-year insurance policy and issued Check 1e2 for $1,716 to pay the entire premium. 3 Purchased office furniture for $16,689 from Furniture Warehouse; issued Check 103 for $13, 4ee and agreed to pay the balance in 60 days. The equipment has an estimated useful life of six years and a $1,200 salvage value. The office furniture will be depreciated using the straight-line method. 5 Purchased office supplies for $1,970 with Check 104. Assume $880 of supplies are on hand July 31, 20x1. Required: 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and uneamed Income as a liability for the year 20X1. 2. Record the adjusting journal entries that must be made on July 31, 20X1 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 u income as a liability for the year 20X1. Date General Journal Debit Credit Jul. 01, 20X1 Prepaid rent 11,850 Cash 11,850 No 1 Prev 1 of 2 HE Next > 2 Jul. 01, 20X1 Cash 50,440 1,560 Prepaid interest Notes payable 52,000 3 Jul. 01, 20X1 61,200 Cash Unearned financial services fees 61,200 4 Jul. 01, 20X1 20,400 Office equipment Notes payable 20,400 5 5 Jul. 01, 20X1 1,716 Prepaid insurance Cash 1,716 6 Jul. 03, 20X1 16,680 Office furniture Cash 13,400 4 Jul 01, 20X1 20,400 Office equipment Notes payable 20,400 5 Jul 01, 20X1 1,716 Prepaid insurance Cash 1,716 16,680 6 Jul, 03, 20X1 Office furniture Cash Accounts payable 13,400 3.280 > 1,970 7 Jul. 05, 20X1 Supplies Cash 1970 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze Record the adjusting journal entries that must be made on July 31, 20X1. No Date General Journal Debit Credit Required 1 Required 2 Analyze What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1? Unearned financial service fees, July 31. 20X1
