x Instructions For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2018, 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 transactions during July. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. A. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement for the month ended July 31, 2018. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons () on the income statement. B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement for the month ended July 31, 2018. Be sure to complete the statement heading. Negative amount should be indicated by the minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If an amount is zero, enter "O". C. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet as of July 31, 2018. Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons() on the balance sheet, they will automatically insert where necessary. Negative amount should be indicated by the minus sign 9. A. Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31. Refer to the Chart of Accounts for exact wording of account titles. B. Use the spreadsheet to post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal in CengageNOW. Prepare a post-closing trial balance. Chart of Accounts Labels and Amount Descriptions CHART OF ACCOUNTS Diamond Consulting General Ledger ASSETS 11 Cash 12 Accounts Receivable REVENUE 41 Fees Earned Labels Current assets Current liabilities Expenses For the Month Ended July 31, 2018 July 31, 2018 Property, plant, and equipment Amount Descriptions Change in retained earnings Net income Net loss Retained earnings, July 1, 2018 Retained earnings, July 31, 2018 14 Supplies EXPENSES 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense LIABILITIES Total assets Total current assets 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees Total expenses Total liabilities EQUITY Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary Journal 9. A. Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31. 9. B. Add the appropriate posting reference to the journal in CengageNOW. PAGE 4 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Closing Entries 2 : 3 4 5 6 7 8 9 10 11 12 13 14 Income Statement Retained Earnings Statement 8. A. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement for the month ended July 31, 2018. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income 8. B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement for the month ended July 31, 2018. Be sure to complete the statement heading. Negative amount should be indicated by the minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If an amount is zero, enter"O". statement. Diamond Consulting Diamond Consulting Retained Earnings Statement Income Statement (Label) (Label) 1 1 2 2 (Label) 3 3 4 5 5 6 7 8 9 10 Balance Sheet Post-closing Trial Balance x 10. Prepare a post-closing trial balance. 8. C. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet as of July 31, 2018. Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons (-) on the balance sheet, they will automatically insert where necessary. Negative amount should be indicated by the minus sign. Diamond Consulting POST-CLOSING TRIAL BALANCE July 31, 2018 ACCOUNT TITLE DEBIT CREDIT Diamond Consulting 1 Cash Balance Sheet 2 Accounts Receivable (Label) 3 Supplies Assets - Prepaid Rent 2 Label) 5 Prepaid Insurance 3 6 Office Equipment 7 Accumulated Depreciation 5 8 Accounts Payable 6 9 Salaries Payable 7 10 Unearned Fees 8 11 Common Stock 9 (Label) 12 Retained Earnings 10 13 Totals 11 12 x Instructions For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2018, 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 transactions during July. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. A. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement for the month ended July 31, 2018. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons () on the income statement. B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement for the month ended July 31, 2018. Be sure to complete the statement heading. Negative amount should be indicated by the minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If an amount is zero, enter "O". C. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet as of July 31, 2018. Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons() on the balance sheet, they will automatically insert where necessary. Negative amount should be indicated by the minus sign 9. A. Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31. Refer to the Chart of Accounts for exact wording of account titles. B. Use the spreadsheet to post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal in CengageNOW. Prepare a post-closing trial balance. Chart of Accounts Labels and Amount Descriptions CHART OF ACCOUNTS Diamond Consulting General Ledger ASSETS 11 Cash 12 Accounts Receivable REVENUE 41 Fees Earned Labels Current assets Current liabilities Expenses For the Month Ended July 31, 2018 July 31, 2018 Property, plant, and equipment Amount Descriptions Change in retained earnings Net income Net loss Retained earnings, July 1, 2018 Retained earnings, July 31, 2018 14 Supplies EXPENSES 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense LIABILITIES Total assets Total current assets 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees Total expenses Total liabilities EQUITY Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary Journal 9. A. Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31. 9. B. Add the appropriate posting reference to the journal in CengageNOW. PAGE 4 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Closing Entries 2 : 3 4 5 6 7 8 9 10 11 12 13 14 Income Statement Retained Earnings Statement 8. A. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement for the month ended July 31, 2018. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income 8. B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement for the month ended July 31, 2018. Be sure to complete the statement heading. Negative amount should be indicated by the minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If an amount is zero, enter"O". statement. Diamond Consulting Diamond Consulting Retained Earnings Statement Income Statement (Label) (Label) 1 1 2 2 (Label) 3 3 4 5 5 6 7 8 9 10 Balance Sheet Post-closing Trial Balance x 10. Prepare a post-closing trial balance. 8. C. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet as of July 31, 2018. Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons (-) on the balance sheet, they will automatically insert where necessary. Negative amount should be indicated by the minus sign. Diamond Consulting POST-CLOSING TRIAL BALANCE July 31, 2018 ACCOUNT TITLE DEBIT CREDIT Diamond Consulting 1 Cash Balance Sheet 2 Accounts Receivable (Label) 3 Supplies Assets - Prepaid Rent 2 Label) 5 Prepaid Insurance 3 6 Office Equipment 7 Accumulated Depreciation 5 8 Accounts Payable 6 9 Salaries Payable 7 10 Unearned Fees 8 11 Common Stock 9 (Label) 12 Retained Earnings 10 13 Totals 11 12