Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2014 Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond consulting entered into the following transactions in July.

July 1. The following assets were received from Steffy Lopez: cash $13,500, accounts receivable $20,800, supplies $3,200 and office equipment $7,500. There were no liabilities received.

July 1. Paid two months rent on a lease rental contract; $4,800. July 2. Paid the premiums on property and casualty insurance for 12 months $4,500 July 4. Received cash from clients as an advance payment for services to be provided; $5,500 July 5. Purchased additional office equipment on account from Office Station Company $6,500 July6. Received cash from clients on account, $15,300 July 10. Paid cash for a newspaper advertisement, $400 July 12. Paid Office Station for part of the debt incurred on July 5, $5,200 July 12. Recorded services provided on account for the period July 1-12, $13,300 July 14. Paid receptionist for two weeks salary, $1,750 July 17. Recorded cash from cash clients for fees earner during the period July 1-17, $9,450 July 18, Paid cash for supplies, $600. July 20. Recorded services provided on account for the period July 13-20, $6,650 July24. Recorded cash from cash clients for fees earned for the period July 17-24, $4,000 July 26. Recorded cash from clients on account, $12,000 July27. Paid receptionist for two weeks salary, $1,750. July 29. Paid telephone bill for July, $325 July 31. Paid electricity bill form July, $675. July 31. Recorded cash from cash clients for fees earned for the period July 25-31, $5,200. July 31. Recorded services provided on account for the remainder of July, $3,000 July 31. Withdrew $12,500 for personal use.

Assignment

Journalize the transactions

Post the journal transactions to a ledger with 3 or 4 columns (your choice)

Prepare an unadjusted trial balance

Journalize and post the following adjustments

a. Insurance expired during July is $375.

Supplies on hand at July 31 are $1,525

Depreciation of office equipment for July is $750

Accrued receptionist salary on July 31 is $175

Rent expired during July is $2,400

Unearned fees on July 31 are $2,750.

Prepare an adjusted trial balance

Prepare an income statement, statement of owners equity and balance sheet

Assuming this is the end of the fiscal year journalize and post the closing entries

Prepare a post closing trial balance

Chart of Accounts

11 Cash 12 Accounts receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Steffy Lopez, Capital 32 Steffy Lopez, Drawing 33 Income Summary 41 fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 insurance Expense 59 Misc. Expense