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PR 4-5A Complete accounting cycle For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1,

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PR 4-5A Complete accounting cycle For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2018, Steffy decided to move to rented quarters and to operate the busi- ness, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July: July 1. The following assets were received from Steffy Lopez in exchange for common stock: cash, $13,500 Obj. 4,5 accounts receivable, $20,800; supplies, $3,200; and office equipment, $7,500. There were no liabilities received. 1. Paid two months' rent on a lease rental contract, $4,800. 2. Paid the premiums on property and casualty insurance policies, $4,500. 4. Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,500. 5. Purchased additional office equipment on account from Office Station Co., $6,500. 6. Received cash from clients on account, $15,300 10. Paid cash for a newspaper advertisement, $400. 12. Paid Office Station Co. for part of the debt incurred on July 5, $5,200 12. Recorded services provided on account for the period July 1-12, $13,300. 14. Paid receptionist for two weeks'salary, $1,750 Record the following transactions on Page 2 of the journal 17. Recorded cash from cash clients for fees earned during the period July 1-17, $9.450 18. Paid cash for supplies, $600. 20. Recorded services provided on account for the period July 13-20, $6,650. 24. Recorded cash from cash clients for fees earned for the period July 17-24, $4,000 26. Received cash from clients on account, $12,000. 27. Paid receptionist for two weeks' salary, $1,750. 29. Paid telephone bill for July, $325. 31. Paid electricity bill for July, $675 31. Recorded cash from cash clients for fees earned for the period July 25-31, $5,200. 31. Recorded services provided on account for the remainder of July, $3,000 31. Paid dividends, $12,500 8. Net income: $33,475 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). (A) Insurance expired during July is $375 (B) Supplies on hand on July 31 are $1,525 (C) Depreciation of office equipment for July is $7S0. (D) Accrued receptionist salary on July 31 is $175 (E) Rent expired during July is $2,400. (F) Unearned fees on July 31 are $2,750. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 5. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. (Income Suminary is account #34 in the chart of ac- counts.) Record the closing entries on Page 4 of the journal. Indicate closed acounts by inserting a line in both the Balance columns opposite the closing entry 10. Prepare a post-closing trial balance

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