Trucks, 56, Insurance Expense, 57. 4. Prepare an adjusted trial balance. 5. Prep

Question

Trucks, 56, Insurance Expense, 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet 6. Journalize and post the closing entries. Record the dosing entries on Page 27 of the journal. (Income Summary is account 33 in the chart of accounts) Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 7. Prepare a post-closing trial balance. PR4-5A Complete accounting cycle For the past several years, Steffy Lopez has operated a pant-time consulting business from his home. As of July 1, 2016, 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. Consulting entered into the following transactions during July. ODJ. 4, s &. Net income: 33,475 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. 1. Paid two months' rent on a lease rental contract, $4,800. 2. Paid the premiums on property and casualty insurance policies, $4,500. 4. Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,500. 5. Purchased additional office equipment on account from Office Station Cu, $6,500. 6. Received cash from cdients on account, $15,300. 10. Paid cash for a newspaper advertisement, $400. 12. Paid Office Station Co. for part of the debt incurred on July 5, $5,200. 12. Recorded services provided on account fos the period July 1-12, $13,300. 14. Paid receptionist for two weeks' salary, $1,750. Record tbe following transactions on Page 2 of the journal: 17. Recorded cash from cash clients for fees earned during the period July 1-17, $9,450. 18. Paid cash for supplies, $600. 20. Recorded services provided on account for the period July 13-20, $6,650 24. Recorded cash from cash clients for fees earned for the period July 17-24, $4,000. 26. Received cash from dlients on account, $12,000. 27. Paid receptionist for two weeks' salary, $1,750. 29. Paid telephone bill for July, $325. 31. Paid electricity bill for July, $675. 31. Recorded cash from cash dlients for fees earned for the period July 25-31, $5,200.

Explanation / Answer

In the books of Steffy Lopez Journal Entries for the yr ended july 2016 Date Account Title Dr Amount Cr Amount 1-Jul Cash $13,500 Accounts Rec $20,800 Supplies $3,200 Office Equipment $7,500 To Steff Lopez Capital $45,000 Being capital introduced 1-Jul Prepaid Rent $4,800 To cash $4,800 being the prepaid rent paid 2-Jul Prepaid Insurance $4,500 To Cash $4,500 being the prepaid insurance paid 4-Jul Cash $5,500 To Unearned Fees $5,500 to record the advance fees from clients 5-Jul Office equipment $6,500 To Accounts Payable $6,500 to record the purchase of Office equipment 6-Jul cash $15,300 To Accounts Receivable $15,300 to record the cash received from clients 10-Jul Misc Exp $400 To Cash $400 to record the payment of misc exp 12-Jul Accounts Payable $5,200 To cash $5,200 to record the payment to office station co on account 12-Jul Accounts Receivable $13,300 To Fees earned $13,300 to record the services on account 14-Jul Salary exp $1,750 To cash $1,750 to record the salary exp 17-Jul Cash $9,450 To Fees earned $9,450 to record the cash from cash clients for fees 18-Jul Supplies $1,750 To Cash $1,750 to record the supplies 20-Jul Accounts Receivable $6,650 To Fees Earned $6,650 to record the services 24-Jul cash $4,000 To Fees Earned $4,000 to record the cash from fees earned 26-Jul cash $12,000 To Accounts Receivable $12,000 to record the receipt 27-Jul Salary exp $1,750 To Cash $1,750 To record the salary exp 29-Jul Misc Exp $325 To cash $325 to record the telephone bills 31-Jul Misc Exp $675 To cash $675 to record the electricity bills 31-Jul Cash $5,200 To Fees earned $5,200 To record the receipt 31-Jul Drawings-Steffy Lopez $12,500 To Cash $12,500 to record the drawings

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