Problem #1

JFK Corporation provides blood-testing services for various businesses. The company started business early in June 2013.

The following is the balance sheet of the company as of June 30, 2013:

JFK Corporation
Balance Sheet
June 30 2013*
Assets		Liabilities
Cash	$46,000	Taxes payable	25,000
Accounts receivable	51,500	Accounts Payable	$15,000
Stationery	2,000	Total Liabilities	$40,000
Land	150,000
Building	100,000	Owners Equity
Blood testing equipment	110,000	Capital Stock	350,000
		Retained Earnings	69,500
Total Assets	$459,500	Total Owners Equity	$419,500
		Total Liabilities and Owners Equity	$459,500

*Additional information:

The total amount of accounts receivable the company had as of June 30, is to be collected on October 31, 2013;

The total amount of taxes payable the company had as of June 30, is to be paid by July 31, 2013;

The total amount of accounts payable the company had as of June 30, is to be paid by September 30, 2013;

JFK Co. had the following transactions during the month of July, 2013:

1	02.07	Purchased computers for $8,000. $3,000 paid immediately, the remaining balance is to be paid by August 31, 2013;
2	04.07	Provided blood-testing service to Palm Co. for $38,000. $5,000 collected immediately, and the remaining balance Palm Co will pay by October 31, 2013;
3	08.07	Purchased stationery for $1,500. This amount is to be paid by September 30, 2013;
4	10.07	Paid all debt for taxes;
5	15.07	Sold one computer, which was not used, for $1,000. The total amount is to be collected by September 30, 2013;
6	18.07	Signed a contract with Gemma Co to provide blood-testing service in the amount of $16,000 in September 2013;
7	20.07	Received $7,000 from Ruby Inc. for the services to be provided in August 2013;
8	31.07	Received and paid a bill of $300 for office utilities for July 2013;
9	31.07	Salaries of employees for July is $12,000 to be paid by August 10, 2013;
10	31.07	Paid office rent for August 2013 in the amount of $2,500;

Required:

1. Prepare journal entries in the books of JFC Co. for July 2013;

2. Prepare the Unadjusted Trial Balance of JFC Co., including the effect of July 2013 transactions.

Show all supporting calculations where necessary!