preapare trial balance at July 31

post to the ledger account

enter july 1 balances in the ledger accounts(use T account)

journalize the july transaction

ACR4.4 At June 30, 2020, the end of its most recent fiscal year, Green River Computer Consultants 31 post-closing trial balance was as follows: Credit Debit $5,230 1,200 690 Cash Accounts receivable Supplies Accounts payable Unearned service revenue Common stock Retained earnings $ 400 1,120 3,600 2,000 $7,120 $7,120 6 9 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 2020, and adjusts its accounts monthly July 1 Purchased equipment, paying $4,000 cash and signing a 2-year note payable for $20,000. 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. 2 Issued 20,000 shares of common stock for $50,000 cash. 3 Paid $3,600 cash for a 12-month insurance policy effective July 1. 3 Paid the first 2 (July and August 2020) months' rent for an annual lease of office space for $4,000 per month Paid $3,800 for supplies. Visited client offices and agreed on the terms of a consulting project. Green River will bill the client, Connor Productions, on the 20th of each month for services performed. 10 Collected $1,200 cash on account from Milani Brothers. This client was billed in June when Green River performed the service. 13 Performed services for Fitzgerald Enterprises. This client paid $1,120 in advance last month. All services relating to this payment are now completed. 14 Paid $400 cash for a utility bill. This related to June utilities that were accrued at the end of June. 16 Met with a new client, Thunder Bay Technologies. Received $12,000 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $11,000. 20 Performed services worth $28,000 on account and billed customers. 20 Received a bill for $2,200 for advertising services received during July. The amount is not due until August 15. 23 Performed the first phase of the project for Thunder Bay Technologies. Recognized $10,000 of revenue from the cash advance received July 16. 27 Received $15,000 cash from customers billed on July 20. Adjustment data: 1. Adjustment of prepaid insurance. 2. Adjustment of preprid rent. 3. Supplies used, $1,250. 4. Equipment depreciation, $500 per month. Expand Your Critical Thi 5. Accrual of interest on note payable. (Hint: Use the formula from Ilustration 3.17 to compute interest.) 6. Salaries for the second half of July, $11,000, to be paid on August 1. 7. Estimated utilities expense for July, $800 (invoice will be received in August). 8. Income tax for July, $ 1,200, will be paid in August (Hint: Use the accounts Income Tax Expense and Income Taxes Payable.) The chart of accounts for Green River Computer Consultants contains the following accounts: Cash, Ac- counts 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 Rev- enue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Adver tising Expense, Income Tax Expense, Interest Expense, Rent Expense, and Utilities Expense. Instructions a. Enter the July 1 balances in the ledger accounts. (Use T-accounts.) b. Journalize the July transactions. 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. 1. Prepare an adjusted trial balance. g. Prepare an income statement and a retained earnings statement for July and a classified balance sheet at July 31, h. Journalize and post closing entries and complete the closing process, i. Prepare a post-closing trial balance at July 31. g. Net income $6,770 Tot. assets $99,670