On Jun 30, 2021, the end of its most recent fiscal year, Green River Computer Consultants' post-closing trial balance was as follows: The company underwent a major expansion in July. New staff was hired and more financing was obtained. Green River conducted the following transactions during July 2021, and adjusts its accounts monthly. July 01 Purchased equipment, paying $4,180 cash and signing a 2-year note payable for $20,720. The equipment has a 8 -year useful life. The note has a 3% interest rate, with interest payable on the first day of each following month. July 02 Issued 20,400 shares of common stock for $51,000 cash. July 03 Paid $4,050 cash for a 12-month insurance policy effective July 01. July 10 Collected $1,950 cash on account from Milani Brothers. This client was billed in June when Green River performed the service. July 13 Performed services for Fitzgerald Enterprises. This client paid $1,820 in advance last month. All services relating to this payment are now completed. July 14 Paid $1,300 cash for a utility bill. This was related to June utilities that were accrued at the end of June. July 20 Performed services worth \$28,300 on account and billed customers. Adjustment data: 1. Adjustment of prepaid insurance. 2. Equipment depreciation, $259 per month. 3. Accrual of interest on note payable. 4. Estimated utilities expense for July, $1,700 (invoice will be received next month). The chart of accounts for Green River Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, and Utilitie Expense. - Instructions a. Journalize the July transactions (including adjusting entries). b. Enter the opening balances in the ledger accounts. (Use T-accounts.) c. Post to the ledger accounts. d. Prepare a trial balance at July 31. e. Journalize and post adjusting entries for the month ending July 31 . f. Prepare an adjusted trial balance. g. Prepare an income statement and a retained earnings statement for July and a balance sheet at Jul 31,2021 . (Net income $25,973, Total assets $110,344 ) \begin{tabular}{l|l} \multicolumn{2}{c}{ ACCOUATS RECEIWABLE } \\ \hline Jul 01 Bis. & \\ \hline Jal 31 Bal $0 & \\ \hline \end{tabular} \begin{tabular}{l|l} \multicolumn{2}{c}{ EQUIPHENT } \\ \hline & \\ \hline & \\ \hline & \end{tabular} \begin{tabular}{l|l} \hline \multicolumn{2}{c}{ DEPRECIATIDN EXPENSE } \\ \hline & \\ \hline & \\ \hline \end{tabular} \begin{tabular}{l|l} IHCDIE TAXES PMYMBLE \\ \hline & \\ \hline & \\ \hline \end{tabular} GREEN RIVER COMPUTER CONSULTANTS Trial Ralanrae GREEN RIVER COMPUTER CONSULTANTS Income Statement Revenues Expenses Total expenses GREEN RIVER COMPUTER CONSULTANTS Retained Earnings Statement Retained earnings, Jul 01 Add: GREEN RIVER COMPUTER CONSULTANTS Balance Sheet Assets Current assets Total current assets Property, plant, and equipment TOTAL ASSETS Current liabilities Total current liabilities Long-term liabilities Stockholders' equity
