The CCBC Corporation had the following opening trial balance at the beginning of its fiscal year, July 1, 2018:

During the month of July, the following selected transactions took place:
July 2 Paid $1,500 for two months' rent in advance for July and August.
7 Purchased $200 of supplies on account.
14 Collected half of outstanding accounts receivable.
15 Borrowed $1,000 from the bank for one year at an interest rate of 5%.
21 Received $1,000 cash from a customer for services to be performed in August.
28 Performed $1,500 of services to a customer on account.
Additional information:
1. At July 31, the company had performed $800 of services for a client that it had not billed or recorded.
2. Supplies on hand at July 31 were $500.
3. The equipment has a five-year useful life and uses straight-line depreciation.
4. Interest is due on the bank loan on the first day of each following month, beginning August 1.
5. As at July 31, the company owed $2,500 of salaries to its employees for the month just ended.
6. As at July 31, the company had earned $2,000 of revenue that had been paid in advance.
Instructions
(a) Record the July transactions.
(b) Prepare adjusting entries at July 31, assuming the company prepares adjusting entries monthly. Round all calculations to the nearest dollar.
Prepare adjusting entries.

Transcribed Image Text:

Debit Credit Cash Accounts receivable Supplies Equipment Accumulated depreciation-equipment Unearned revenue Common shares Retained earnings $ 4,400 6,550 15,000 $6,000 2,500 13.650 S27.150 $27,150