Help I S Accounting Cycle Review 4-4 At June 30, 2017, the end of its most recen
ID: 2554540 • Letter: H
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Help I S Accounting Cycle Review 4-4 At June 30, 2017, the end of its most recent fiscal year, Bramble Computer Consultants' post-closing trial balance was as follows: Cash $4,080 Supplies Accounts payable Unearned service revenue $310 870 2,800 Retained earnings The company underwent a major expansion in July. New staff was hired and more financing was obtained. Bramble conducted the following transactions during July 2017, and adjusts its accounts monthly July 1 Purchased equipment, paying $3,600 cash and signing a 2-year note payable for S15 600 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 2 Issued 15,600 shares of common stock for $39,000 cash 3 Paid $3,000 cash for a 12-month insurance policy effective July 1 3 Paid the first 2 (Quly and August 2017) months' rent for an annual lease of office space for $3,100 per month. 6 Paid $3,000 for supplies. Visited client offices and agreed on the terms of a consulting project. Bramble will bill the client, Connor Productions, on the 20th of each month for services 10 Collected $940 cash on account from Milani Brothers. This client was billed in June when Bramble performed the service. 13 Performed services for Fitzgerald Enterprises. This client paid $870 in advance last month. All services relating to this payment are now completed. 14 16 18 20 Paid $310 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 Paid semi-monthly salaries for $8,600 Performed services worth $21,800 on account and billed customers. Received $9,400 cash in advance for future services to be performed services received during July. The amount is not due until August 15 a bill for $1,700 for d the first phase of the ed $7,800 of re July 16Explanation / Answer
Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Jul Equipment 19,200.00 Cash 3,600.00 Notes Payable 15,600.00 (to record the equipment purchased) 2-Jul Cash 39,000.00 Common Stock 39,000.00 (To record the issue of common stock) 3-Jul Prepaid Insurance 3,000.00 Cash 3,000.00 (To record the insurance paid) 3-Jul Prepaid Rent 6,200.00 Cash 6,200.00 (To record the rent paid) 6-Jul Supplies 3,000.00 Cash 3,000.00 (To record the supplies purchased) 9-Jul No Entry 10-Jul Cash 940.00 Accounts Receivable 940.00 (To record the cash received) 13-Jul Unearned Service Revenue 870.00 Service Revenue 870.00 (To record the cash recd for future services) 14-Jul Accounts Payable 310.00 Cash 310.00 (To record the cash paid) 16-Jul Cash 9,400.00 Unearned Service Revenue 9,400.00 (To record the cash recd for future services) 18-Jul Salaries & Wages Expense 8,600.00 Cash 8,600.00 (To record the salaries paid) 20-Jul Accounts Receivable 21,800.00 Service Revenue 21,800.00 (To record the service revenue) 20-Jul Advertisement Expense 1,700.00 Accounts Payable 1,700.00 (To record the advertisement expense) 23-Jul Unearned Service Revenue 7,800.00 Service Revenue 7,800.00 (To record the service revenue) 27-Jul Cash 11,700.00 Accounts Receivable 11,700.00 (To record the cash received) Adjusting Journal Entry Date Particulars Dr. amt. Cr. Amt. 31-Jul Insurance Expense ($3,000 / 12) 250.00 Prepaid Insurance 250.00 (To record the insurance expense) 31-Jul Rent Expense ($6,200 / 2) 3,100.00 Prepaid Rent 3,100.00 (To record the rent expense) 31-Jul Supplies Expense 1,000.00 Supplies 1,000.00 (To record the supplies expense) 31-Jul Depreciation Expense 400.00 Accumulated Depreciation - Equipment 400.00 (To record the depreciation expense) 31-Jul Interest Expense ($15,600 X 6% X 1/12) 78.00 Interest Payable 78.00 (To record the interest expense) 31-Jul Salaries & Wages Expense 8,600.00 Salaries & Wages Payable 8,600.00 (To record the salares due) 31-Jul Utilities Expense 620.00 Accounts Payable 620.00 (To record the utilities due) 31-Jul Income Tax Expense 940.00 Income Tax Payable 940.00 (To record the income tax expense) Answer 2. Cash Accounts Receivable Supplies Beg. Bal. 4,080.00 3,600.00 1-Jul Beg. Bal. 940.00 940.00 10-Jul Beg. Bal. 540.00 1,000.00 31-Jul 2-Jul 39,000.00 3,000.00 3-Jul 20-Jul 21,800.00 11,700.00 27-Jul 6-Jul 3,000.00 10-Jul 940.00 6,200.00 3-Jul 16-Jul 9,400.00 3,000.00 6-Jul 27-Jul 11,700.00 310.00 14-Jul 8,600.00 18-Jul End. Bal. 40,410.00 End. Bal. 10,100.00 End. Bal. 2,540.00 Prepaid Insurance Prepaid Rent Equipment Beg. Bal. - 250.00 31-Jul Beg. Bal. - 3,100.00 31-Jul Beg. Bal. - 3-Jul 3,000.00 3-Jul 6,200.00 1-Jul 19,200.00 End. Bal. 2,750.00 End. Bal. 3,100.00 End. Bal. 19,200.00 Accumulated Depreciation - Equipment Accounts Payable Notes Payable Beg. Bal. - Beg. Bal. 310.00 Beg. Bal. - 400.00 31-Jul 14-Jul 310.00 1,700.00 20-Jul 15,600.00 1-Jul 620.00 31-Jul End. Bal. 400.00 End. Bal. 2,320.00 End. Bal. 15,600.00 Interest Payable Income Tax Payable Salaries & Wages Payable Beg. Bal. - Beg. Bal. - 940.00 31-Jul Beg. Bal. - 78.00 31-Jul 8,600.00 31-Jul End. Bal. 78.00 End. Bal. 940.00 End. Bal. 8,600.00 Unearned Service Revenue Common Stock Retained Earnings Beg. Bal. 870.00 Beg. Bal. 2,800.00 Beg. Bal. 1,580.00 13-Jul 870.00 9,400.00 16-Jul 39,000.00 2-Jul 23-Jul 7,800.00 End. Bal. 1,600.00 End. Bal. 41,800.00 End. Bal. 1,580.00 Dividends Service Revenue Supplies Expense Beg. Bal. - 870.00 13-Jul 31-Jul 1,000.00 21,800.00 20-Jul 7,800.00 23-Jul End. Bal. - End. Bal. 30,470.00 End. Bal. 1,000.00 Depreciation Expense Insurance Expense Salaries & Wages Expense Beg. Bal. - Beg. Bal. - Beg. Bal. - 31-Jul 400.00 31-Jul 250.00 18-Jul 8,600.00 31-Jul 8,600.00 End. Bal. 400.00 End. Bal. 250.00 End. Bal. 17,200.00 Advertisement Expense Income Tax Expense Interest Expense Beg. Bal. - Beg. Bal. - Beg. Bal. - 20-Jul 1,700.00 31-Jul 940.00 31-Jul 78.00 End. Bal. 1,700.00 End. Bal. 940.00 End. Bal. 78.00 Rent Expense Utilities Expense Beg. Bal. - Beg. Bal. - 31-Jul 3,100.00 31-Jul 620.00 End. Bal. 3,100.00 End. Bal. 620.00 Answer 3. Bramble Computer Consultants Unadjusted Trial Balance For the Month Ended July 31, 2017 Accounts Title Debits Credits Cash 40,410.00 Accounts Receivable 10,100.00 Supplies 3,540.00 Prepaid Insurance 3,000.00 Prepaid Rent 6,200.00 Equipment 19,200.00 Accumulated Depreciation - Equipment - Accounts Payable 1,700.00 Notes Payable 15,600.00 Interest Payable - Income Tax Payable - Salaries & Wages Payable 8,600.00 Unearned Service Revenue 1,600.00 Common Stock 41,800.00 Retained Earnings 1,580.00 Dividends - Service Revenue 30,470.00 Supplies Expense - Depreciation Expense - Insurance Expense - Salaries & Wages Expense 17,200.00 Advertisement Expense 1,700.00 Income Tax Expense - Interest Expense - Rent Expense - Utilities Expense - Total 101,350.00 101,350.00 - Bramble Computer Consultants Adjusted Trial Balance For the Month Ended July 31, 2017 Accounts Title Debits Credits Cash 40,410.00 Accounts Receivable 10,100.00 Supplies 2,540.00 Prepaid Insurance 2,750.00 Prepaid Rent 3,100.00 Equipment 19,200.00 - Accumulated Depreciation - Equipment - 400.00 Accounts Payable 2,320.00 Notes Payable 15,600.00 Interest Payable 78.00 Income Tax Payable 940.00 Salaries & Wages Payable 8,600.00 Unearned Service Revenue 1,600.00 Common Stock 41,800.00 Retained Earnings 1,580.00 Dividends - Service Revenue - 30,470.00 Supplies Expense 1,000.00 Depreciation Expense 400.00 Insurance Expense 250.00 Salaries & Wages Expense 17,200.00 Advertisement Expense 1,700.00 Income Tax Expense 940.00 Interest Expense 78.00 Rent Expense 3,100.00 Utilities Expense 620.00 Total 103,388.00 103,388.00 - Bramble Computer Consultants Post Closing Trial Balance For the Month Ended July 31, 2017 Accounts Title Debits Credits Cash 40,410.00 Accounts Receivable 10,100.00 Supplies 2,540.00 Prepaid Insurance 2,750.00 Prepaid Rent 3,100.00 Equipment 19,200.00 Accumulated Depreciation - Equipment 400.00 Accounts Payable 2,320.00 Notes Payable 15,600.00 Interest Payable 78.00 Income Tax Payable 940.00 Salaries & Wages Payable 8,600.00 Unearned Service Revenue 1,600.00 Common Stock 41,800.00 Retained Earnings 6,762.00 Total 78,100.00 78,100.00
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