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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 $8,680

Explanation / 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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