At June 30, 2017, the end of its most recent fiscal year, Blue Computer Consulta
ID: 2554580 • Letter: A
Question
At June 30, 2017, the end of its most recent fiscal year, Blue Computer Consultants’ post-closing trial balance was as follows:
The company underwent a major expansion in July. New staff was hired and more financing was obtained. Blue conducted the following transactions during July 2017, and adjusts its accounts monthly.
Adjustment data:
The chart of accounts for Blue Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense.
Journalize and post adjusting entries for the month ending July 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Debit Credit Cash $6,380 Accounts receivable 1,460 Supplies 840 Accounts payable $490 Unearned service revenue 1,370 Common stock 4,400 Retained earnings 2,420 $8,680 $8,680Explanation / Answer
Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Jul Equipment 28,800.00 Cash 4,400.00 Notes Payable 24,400.00 (To record the purchase of equipment) 2-Jul Cash 61,000.00 Common Stock 61,000.00 (To record issue o common stock) 3-Jul Prepaid Insurance 4,200.00 Cash 4,200.00 (To record the insurance paid) 3-Jul Prepaid Rent 9,800.00 Cash 9,800.00 (To record the rent paid) 6-Jul Supplies 4,600.00 Cash 4,600.00 (To record the supplies purchased) 9-Jul No Entry 10-Jul Cash 1,460.00 Accounts Receivable 1,460.00 (To record the cash received) 13-Jul Unearned Service Revenue 1,370.00 Service Revenue 1,370.00 (To record the service revenue) 14-Jul Accounts Payable 490.00 Cash 490.00 (To record the cash paid) 16-Jul Cash 14,600.00 Unearned Service Revenue 14,600.00 (To record the cash recd for future services) 18-Jul Salaries & Wages Expense 13,400.00 Cash 13,400.00 (To record the salaries expenses) 20-Jul Accounts Receivable 34,200.00 Service Revenue 34,200.00 (To record the service revenue) 20-Jul Advertisement Expense 2,700.00 Accounts Payable 2,700.00 (To record the advertisement expense) 23-Jul Unearned Service Revenue 12,200.00 Service Revenue 12,200.00 (To record the service revenue) 27-Jul Cash 18,300.00 Accounts Receivable 18,300.00 (To record the cash received) 31-Jul Insurance Expense 350.00 Prepaid Insurance 350.00 (To record the insurance expense) 31-Jul Rent Expense 4,900.00 Prepaid Rent 4,900.00 (To record the rent expense) 31-Jul Supplies Expense 1,550.00 Supplies 1,550.00 (To record the supplies expense) 31-Jul Depreciation Expense 600.00 Accumulated Depreciation - Equipment 600.00 (To record the depreciation expense) 31-Jul Interest Expense 122.00 Interest Payable 122.00 (To record the interest expense) 31-Jul Salaries & Wages Expense 13,400.00 Salaries & Wages Payable 13,400.00 (To record the salaries & wages due) 31-Jul Utilities Expense 980.00 Accounts Payable 980.00 (To record the utilities expense) 31-Jul Income Tax Expense 1,460.00 Income Tax Payable 1,460.00 (To record the income tax expense) Answer 2. Cash Accounts Receivable Supplies Beg. Bal. 6,380.00 4,400.00 1-Jul Beg. Bal. 1,460.00 1,460.00 10-Jul Beg. Bal. 840.00 1,550.00 31-Jul 2-Jul 61,000.00 4,200.00 3-Jul 20-Jul 34,200.00 18,300.00 27-Jul 6-Jul 4,600.00 10-Jul 1,460.00 9,800.00 3-Jul 16-Jul 14,600.00 4,600.00 6-Jul 27-Jul 18,300.00 490.00 14-Jul 13,400.00 18-Jul End. Bal. 64,850.00 End. Bal. 15,900.00 End. Bal. 3,890.00 Prepaid Insurance Prepaid Rent Equipment Beg. Bal. - 350.00 31-Jul Beg. Bal. - 4,900.00 31-Jul Beg. Bal. - 3-Jul 4,200.00 3-Jul 9,800.00 1-Jul 28,800.00 End. Bal. 3,850.00 End. Bal. 4,900.00 End. Bal. 28,800.00 Accumulated Depreciation - Equipment Accounts Payable Notes Payable Beg. Bal. - Beg. Bal. 490.00 Beg. Bal. - 600.00 31-Jul 14-Jul 490.00 2,700.00 20-Jul 24,400.00 1-Jul 980.00 31-Jul End. Bal. 600.00 End. Bal. 3,680.00 End. Bal. 24,400.00 Interest Payable Income Tax Payable Salaries & Wages Payable Beg. Bal. - Beg. Bal. - 1,460.00 31-Jul Beg. Bal. - 122.00 31-Jul 13,400.00 31-Jul End. Bal. 122.00 End. Bal. 1,460.00 End. Bal. 13,400.00 Unearned Service Revenue Common Stock Retained Earnings Beg. Bal. 1,370.00 Beg. Bal. 4,400.00 Beg. Bal. 2,420.00 13-Jul 1,370.00 14,600.00 16-Jul 61,000.00 2-Jul 23-Jul 12,200.00 End. Bal. 2,400.00 End. Bal. 65,400.00 End. Bal. 2,420.00 Dividends Service Revenue Supplies Expense Beg. Bal. - 1,370.00 13-Jul 31-Jul 1,550.00 34,200.00 20-Jul 12,200.00 23-Jul End. Bal. - End. Bal. 47,770.00 End. Bal. 1,550.00 Depreciation Expense Insurance Expense Salaries & Wages Expense Beg. Bal. - Beg. Bal. - Beg. Bal. - 31-Jul 600.00 31-Jul 350.00 18-Jul 13,400.00 31-Jul 13,400.00 End. Bal. 600.00 End. Bal. 350.00 End. Bal. 26,800.00 Advertisement Expense Income Tax Expense Interest Expense Beg. Bal. - Beg. Bal. - Beg. Bal. - 20-Jul 2,700.00 31-Jul 1,460.00 31-Jul 122.00 End. Bal. 2,700.00 End. Bal. 1,460.00 End. Bal. 122.00 Rent Expense Utilities Expense Beg. Bal. - Beg. Bal. - 31-Jul 4,900.00 31-Jul 980.00 End. Bal. 4,900.00 End. Bal. 980.00
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