Problem 12.2A (Algo) Recording adjustments for accrued and prepaid expense items and unearned income. LO 12-2, 12-3 On July 1 20X1. Tim Stein established his own Financial Services Selected transactions for the first few days of Julyfollow DATE TRANSACTIONS 20X1 July 1 Siped a lease for an office and issued Check 101 for $13,050 to pay the rent in advance for six months 1 Borrowed money from Second National Bank by issuing a four-month, 6 percent note fon 536,080 received $35.280 because the bank deducted the interest in advance. 1 signed an agreement with Carter Corp. to provide financial services for one year at $5,900 per month received the entire fee of $70,300 in advance. The $70,000 was credited to Unearned Financial Service Fees 1 Purchased office equipment for $17,000 fron Office Outfitters, issued two month, 12 percent cote En paynent. The equipoent is estimated to have a useful life of six years and = $1,160 selvage value. The equipment will be depreciated wsing the straight-line wethod. 1 Purchased a one-year Insurance policy and issued Check 102 for $1,620 to pay the entire prend Purchased office furniture for $16.900 from Furniture Warehouse Issued Check 10 for 35.400 and need to pay the balance In 60 days. The equipment has an estimated useful life of five years and $1,600 salvee Value The office furniture will be depreciated using the straight line method 5 Purchased office supplies for $1.810 with Check 104. Assume $100 of supplies are on and July 2012 Required: 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and uneamed income as a liability for the year 20X1 2. Record the adjusting Journal entries that must be made on July 31, 20x1 Analyze What balance should be reflected in Uneorned Financial Service Fees at July 31, 2017 Complete this question by entering your answers in the tabs below. Required 2 Analyze Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and uneared income as ability for the year 20X1 income as a liability for the year 20X1. 2. Record the adjusting journal entries that must be made on July 31, 20X1 Analyze: What balance should be reflected in Unearned Financial Service Fees at July 31, 20x1? Complete this question by entering your answers in the tabs below. Required: Required 2 Analyze Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned Income as a liability for the year 20X1 View transaction list Journal entry worksheet 28 1 2 3 4 5 6 7 Record the purchase of equipment, Note Enter debits before credits General Journal Dobit Credit Date Jul 01, 20X1 Record entry Clear entry View general Journal Prey 1 of 1 Next for anything