On July 31, 2024, after one month of operation, the general ledger of Michael Mendoza, CPA, contained the accounts and balances given below. ACCOUNTS AND BALANCES Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Prepaid Advertising Furniture Accumulated Depreciation-Furniture Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Unearned Accounting Fees Michael Mendoza, Capital Michael Mendoza, Drawing Accounting Fees Salaries Expense Utilities Expense Telephone Expense Supplies Expense Rent Expense Insurance Expense Advertising expense Depreciation Expense-Furniture Depreciation Expense-Equipment Interest Expense Total Debit Credit $ 26,710 2,440 960 10,500 2,820 400 14,760 7,250 $ 17,700 5,500 3,600 4,200 270 210 6,600 34,720 9,600 $ 74,120 $ 74,120 ADJUSTMENTS a.) On July 31, an inventory of the supplies showed that items costing $530 were on hand. b.) On July 1, the firm paid $10,500 in advance for three months of rent. c.) On July 1, the firm purchased a one-year insurance policy for $2,820. d.) On July 1, the firm paid $400 for four months of advertising. The ads began running in July. e.) On July 1, the firm purchased office furniture for $14,760. The furniture is expected to have a useful life of six years and a salvage value of $1,800. f.) On July 1, the firm purchased office equipment for $7,250. The equipment is expected to have a useful life of five years and a salvage value of $1,850. g.) On July 1, the firm issued a three-month, 6 percent note for $17,700. h.) On July 1, the firm received a consulting fee of $6,600 in advance for a one-year period. Show less Journal entry worksheet 1 2 345678 On July 31, an inventory of the supplies showed that items costing $530 were on hand. Note: Enter debits before credits. Date July 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4567 8 On July 1, the firm paid $10,500 in advance for three months of rent. Note: Enter debits before credits. Date July 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5678 On July 1, the firm purchased a one-year insurance policy for $2,820. Note: Enter debits before credits. Date July 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 8 On July 1, the firm paid $400 for four months of advertising. The ads began running in July. Note: Enter debits before credits. Date July 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 7 8 On July 1, the firm purchased office furniture for $14,760. The furniture is expected to have a useful life of six years and a salvage value of $1,800. Note: Enter debits before credits. Date July 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 On July 1, the firm purchased office equipment for $7,250. The equipment is expected to have a useful life of five years and a salvage value of $1,850. Note: Enter debits before credits. Date July 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > 1 2 3 4 5 6 7 8 On July 1, the firm issued a three-month, 6 percent note for $17,700. Note: Enter debits before credits. Date July 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 8 On July 1, the firm received a consulting fee of $6,600 in advance for a one- year period. Note: Enter debits before credits. Date July 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Revenues ed MICHAEL MENDOZA, CPA Income Statement For Month Ended July 31, 2024 Expenses Current assets Total current assets Plant and equipment MICHAEL MENDOZA, CPA Balance Sheet July 31, 2024 Assets Equipment S 7,250.00 Accumulated depreciation-Equipment Furniture 0.00 7,250.00 s 14,760.00 Accumulated depreciation-Furniture Total plant and equipment Total assets 0.00 14,760.00 22,010.00 Notes payable Total liabilities Total Liabilities & Equity Liabilities Equity $ 17,700.00 17,700.00 34,720.00 Adjusting entry related to: ------Account affecting the------ Income Statement Balance Sheet Supplies Prepaid rent Prepaid insurance Prepaid Advertising Depreciation-Furniture Depreciation-Equipment Interest on three-month note Accounting fees in advance Total impact on income due to adjustments: Net income before adjustments Net income after adjustments < Balance Sheet Impact on Income > Impact on net income