The company underwent a major expansion in July. New staff was hired and more financing was obtained. Sarasota conducted the following transactions during July 2022, and adjusts its accounts monthly. July 1 Purchased equipment, paying $4,400 cash and signing a 2-year note payable for $20,800. 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 20,800 shares of common stock for $52,000 cash. Paid $3,600 cash for a 12-month insurance policy effective July 1. Paid the first 2 (July and August 2022) months' rent for an annual lease of office space for $4,200 per month. 6 Paid $4,000 for supplies. Visited client offices and agreed on the terms of a consulting project. Sarasota will bill the client, Connor Productions, 9 on the 20th of each month for services performed. Collected $1,250 cash on account from Milani Brothers. This client was billed in June when Sarasota performed the 10 service. Performed services for Fitzgerald Enterprises. This client paid $1,160 in advance last month. All services relating to 13 this payment are now completed. 14 Paid $420 cash for a utility bill. This related to June utilities that were accrued at the end of June. this payment are now completed. 14 Paid $420 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 $12,500 cash in advance for future services to be 16 performed. 18 Paid semi-monthly salaries for $11,400. 20 Performed services worth $29,100 on account and billed customers. 20 Received a bill for $2,300 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 $10,400 of revenue from the cash 23 advance received July 16. 27 Received $15,600 cash from customers billed on July 20. Adjustment data: 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 3. Supplies used, $1,300. 4. Equipment depreciation, $525 per month. 5. Accrual of interest on note payable. 6. Salaries for the second half of July, $11,400, to be paid on August 1. 7. Estimated utilities expense for July, $830 (invoice will be received in August). 8. Income tax for July, $1,250, will be paid in August. The chart of accounts for Sarasota Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense. Prepare an income statement for July. SARASOTA COMPUTER CONSULTANTS Income Statement 2$ 24 Prepare a retained earning statement for July. SARASOTA COMPUTER CONSULTANTS Retained Earnings Statement 2$ 2$ Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.) SARAS OTA COMPITE R CONSLILTANTS Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.) SARASOTA COMPUTER CONSULTANTS Balance Sheet Assets $ Journalize and post closing entries and complete the closing process. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount,) Date Account Titles and Explanation Debit Credit July 31 (To close revenue account) July 31 Retained Earnings July 1 Bal. 2,130 Service Revenue July 13 1,160 July 20 29,100 July 23 10,400 Prepare a post-closing trial balance at July 31. SARASOTA COMPUTER CONSULTANTS Post-Closing Trial Balance Debit Credit $