PART I: RECORDING BUSINESS TRANSACTIONS For the past several years, Miss Diane has operated a part-time consulting business from her home. As of 1 July 2021, Miss Diane decided to move to rented quarters and to operate the business, which was to be known as Ultimate Consulting, on a full-time basis. Ultimate Consulting entered into the following transactions during July: July 1. 1. 2. 4. The following assets were received from Miss Diane: cash, RM13,500; accounts receivable, RM20,800; supplies, RM3,200; and office equipment, RM7,500. There were no liabilities received. Paid two months' rent on a lease rental contract, RM4,800. Paid the premiums on property and casualty insurance policies, RM4,500. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, RM5,500. 5. Purchased additional office equipment on account from Office Supply Co., RM6,500. Received cash from clients on account, RM15,300. 6. 60221 Paid cash for a social media advertisement, RM400. Paid Office Supply Co. for part of the debt incurred on July 5, RM5,200. Provided services on account for the period July 1-12, RM13,300. 14. Paid receptionist for two weeks' salary, RM1,750. 17 18. 20. Received cash from cash clients for fees earned during the period July 1-17, RM9.450. Paid cash for supplies, RM600. Provided services on account for the period July 13-20, RM6,650. 24. Received cash from cash clients for fees earned for the period July 17-24, RM4,000. 26. 27. 29. Received cash from clients on account, RM12,000. Paid receptionist for two weeks' salary, RM1,750. Paid telephone bill for July, RM325 Paid electricity bill for July, RM675. Received cash from cash clients for fees earned for the period July 25-31, RM5,200. 31. 31. 31. 31. Diane withdrew RM12,500 for personal use. Provided services on account for the remainder of July, RM3,000. Instructions 1. Prepare journal entries for each transaction listed above based on Ultimate Consulting's chart of accounts. Use Section I (a): Initial Journal Entries template. Chart of Accounts for Ultimate Consulting Cash Capital Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equipment Accounts Payable Salaries Payable Drawing Fees Earned Salary Expense Supplies Expense Rent Expense Accumulated Depreciation - Office Equipment Depreciation Expense Unearned Fees Insurance Expense Miscellaneous Expense Income Summary 2. Post the journal entries to T-accounts using Section II template. 3. Enter the unadjusted balance into Section III template (the unadjusted trial balance). 4. At the end of July, the following adjustment data were assembled. Prepare the adjusting journal entries using Section I (b): Adjusting Journal Entries template. Then, post the adjusting journal entries to the T-accounts (use the same T-accounts in Question 2). (a) Insurance expired during July is RM375. (b) Supplies on hand on July 31 are RM1,525. (c) (d) (e) (f) Depreciation of office equipment for July is RM750. Accrued receptionist salary on July 31 is RM175. Rent expired during July is RM2,400. Unearned fees on July 31 are RM2,750. 5. Enter the adjustment data into Section III template (the adjustment columns). 6. Prepare an adjusted trial balance as at 31 July 2021 using Section III template (the adjusted trial balance). 7. Prepare an income statement, a statement of owner's equity, and a balance sheet using Section IV templates. 8. Prepare the closing journal entries using Section I (c): Closing Journal Entries and post to the appropriate account. 9. Finally, prepare a post-closing trial balance using Section III template (the post-closing trial balance). SECTION I: JOURNAL ENTRIES (a) Initial journal entries No. Date Debit Credit Account Names (RM) (RM) (b) Adjusting Journal Entries No. Date (c) Closing Journal Entries No. Date Account Names Debit (RM) Credit (RM) Debit Credit Account Names (RM) (RM) SECTION II: T-ACCOUNTS 2021 July 1 Capital Cash RM 2021 RM XXXXXXX Accounts Receivable 2021 RM 2021 RM 2021 RM Supplies 2021 RM Prepaid Rent 2021 2021 RM RM Prepaid Insurance 2021 RM 2021 RM SECTION III: TRIAL BALANCE Ultimate Consulting Trial Balance as at 31 July 2021 Post-Closing Credit (RM) Unadjusted Adjustment Adjusted Account Name Debit Credit Debit Credit Debit Credit Debit (RM) (RM) (RM) (RM) (RM) (RM) (RM) Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equipment Accumulated Depreciation - OE Accounts Payable Salaries Payable Unearned Fees Capital Drawing Fees Earned Salary Expense Supplies Expense Rent Expense Depreciation Expense Insurance Expense Miscellaneous Expense SECTION IV: FINANCIAL STATEMENTS Ultimate Consulting Income Statement for the Month Ended 31 July 2021 RM RM Ultimate Consulting Statement of Owner's Equity for the Month Ended 31 July 2021 RM RM Ultimate Consulting Balance Sheet as at 31 July 2021 RM RM