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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

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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 lease for an office and issued Check 101 for $13,050 to pay the rent in advance for six months. 1 Borrowed money from Second National Bank by issuing a four-month, 6 percent note for $36,000; received $35,280 because the bank deducted the interest in advance. 1 signed an agreement with Carter Corp. to provide financial services for one year at $5,900 per month; received the entire fee of $20,800 in advance. The $70,800 was credited to Unearned Financial Service Fees. 1 Purchased office equipment for $17,000 from Office Outfitters, issued a two-month, 12 percent note in payment. The equipment is estimated to have a useful life of six years and a $1,168 salvage value. The equipment will be depreciated using the straight-line method 1 Purchased a one-year Insurance policy and issued Check 102 for $1,620 to pay the entire premium 3 Purchased office furniture for $16.900 from Furniture Warehouse; issued Check 103 for $8,400 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of five years and a $1,600 salvage value. The office furniture will be depreciated using the straight-line method. 3 Purchased office supplies for $1,010 with Check 104. Assume $500 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? Complete this question by entering your answers in the tabs below. Required Required 2 Analyze What balance should be reflected in Unearned Financial Service Fees at July 31, 20X17 Ulice, July 31 20X1

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