Please, I need help with h). Thank you.
Accounting Cycle Review 4-4 (Part Level Submission) At June 30, 2017, the end of its most recent fiscal year, Concord Computer Consultants' post-closing trial balance was as follows: Debit Credit Cash Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Retained earnings $5,750 1,320 760 $440 1,230 4,000 2,160 $7,830 $7,830 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Concord conducted the following transactions during July 2017, and adjusts its accounts monthly July 1 2 3 3 6 Purchased equipment, paying $4,400 cash and signing a 2-year note payable for $22,000. The equipment has a 4-year useful life. The note has a 6% interest rate which is payable on the first day of each following month Issued 22,000 shares of common stock for $55,000 cash Paid $4,200 cash for a 12-month insurance policy effective July 1 Paid the first 2 (July and August 2017) months' rent for an annual lease of office space for $4,400 per month Paid $4,200 for supplies. 9 Visited client offices and agreed on the terms of a consulting project. Concord will bill the client, Connor Productions, on the 10 13 14 16 18 20 20 20th of each month for services performed Collected $1,320 cash on account from Milani Brothers. This client was billed in June when Concord performed the service Performed services for Fitzgerald Enterprises. This client paid $1,230 in advance last month. All services relating to this payment are now completed Paid $440 cash for a utility bill. This related to June utilities that were accrued at the end of June Met with a new client, Thunder Bay Technologies. Received $13,200 cash in advance for future services to be performed Paid semi-monthly salaries for $12,100 Performed services worth $30,800 on account and billed customers. Received a bill for $2,400 for advertising services received during July. The amount is not due until August 15 Performed the first phase of the project for Thunder Bay Technologies. Recognized $11,000 of revenue from the cash advance received July 16 Received $16,500 cash from customers billed on July 20 27 Adjustment data Adjustment of prepaid insurance Adjustment of prepaid rent. Supplies used, $1,400 Equipment depreciation, $550 per month Accrual of interest on note payable Salaries for the second half of July, $12,100, to be paid on August 1. Estimated utilities expense for July, $880 (invoice will be received in August) Income tax for July, $1,320, will be paid in August 1. 2. 3. 4. 5. 6. 7. 8. The chart of accounts for Concord 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, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense
