On July 1, 20X1, Tim Stein established his own Financial Services. Selected transactions for the first few days of July follow. DATE TRANSACTIONS 20x1 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 financial services for one year at $5,200 per month; received the entire fee of $62,400 in advance. The $62,400 was credited to Unearned Financial Service Fees.. 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, 20X1. 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 20X1 2. Record the adjusting journal entries that must be made on July 31, 20X1 Analyze: What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1? Journal entry worksheet < 1 2 3 4 5 6 7 > Record the payment of rent. Note: Enter debits before credits. Date Jul. 01, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 > Journal entry worksheet < 1 2 3 4 5. Record the borrowing. Note: Enter debits before credits. Date Jul 01, 20X1 6 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 Record the fees received in advance. Note: Enter debits before credits. Date Jul. 01, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 2 3 4 5 6 7 Record the purchase of equipment. Note: Enter debits before credits. Date Jul. 01, 20X1 General Journal Debit Credit Clear entry Record entry View general journal Required 1 Required 2 > Journal entry worksheet < 1 2 3 4 5 6 > Record the payment for insurance. Note: Enter debits before credits. Date Jul 01, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 > Journal entry worksheet < 1 2 3 4 5 6 7 > Record the purchase of furniture. Note: Enter debits before credits. Date Jul 03, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Required 1. Required 2 > Journal entry worksheet < 1 2 3 4 5 6 7 Record the purchase of supplies. Note: Enter debits before credits. Date Jul 05, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 > What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1? Uneamed financial service fees, July 31, 20X1