Accounting Cycle Review 4-4 (Part Level Submission) At June 30, 2017, the end of

Question

Accounting Cycle Review 4-4 (Part Level Submission)

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.

Prepare a classified balance sheet at July 31

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

S No Date Account Debit Credit 1 Jul 1 Equipment 28800 1 Jul 1 Cash 4400 1 Jul 1 Note Payable 6% 24400 2 Jul 2 Cash 61000 2 Jul 2 Common Stock 24400 Share 61000 3 Jul 3 Prepaid Insurance 4200 3 Jul 3 Cash 4200 4 Jul 3 Prepaid Rent (4900*2) 9800 4 Jul 3 Cash 9800 5 Jul 6 Supplies 4600 5 Jul 6 Cash 4600 6 Jul 9 No Entry 6 Jul 9 7 Jul 10 Cash 1460 7 Jul 10 Accounts Receivable 1460 8 Jul 13 Unearned Service Revenue 1370 8 Jul 13 Service Revenue 1370 9 Jul 14 Accounts Payable 490 9 Jul 14 Cash 490 10 Jul 16 Cash 14600 10 Jul 16 Unearned Service Revenue 14600 11 Jul 18 Salaries Expense 13400 11 Jul 18 Cash 13400 12 Jul 20 Accounts Receivable 34200 12 Jul 20 Service Revenue 34200 13 Jul 20 Advertising Expense 2700 13 Jul 20 Accounts Payable 2700 14 Jul 23 Unearned Service Revenue 12200 14 Jul 23 Service Revenue 12200 15 Jul 27 Cash 18300 15 Jul 27 Accounts Receivable 18300 Adjusting Entries 1 Jul 31 Insurance Expense 350 4200/12 1 Jul 31 Prepaid Insurance 350 2 Jul 31 Rent Expense 4900 2 Jul 31 Prepaid Rent 4900 3 Jul 31 Supply Expense 1500 3 Jul 31 Supplies 1500 4 Jul 31 Depreciation Expense-Equipment 600 4 Jul 31 Accumulated Depcreciation 600 5 Jul 31 Interest Expense 122 24400*6%*1 month 5 Jul 31 Interes Payable 122 6 Jul 31 Salaries Expense 13400 6 Jul 31 Salaries Payable 13400 7 Jul 31 Utilities Expense 980 7 Jul 31 Accounts Payable 980 8 Jul 31 Income Tax Expense 1460 8 Jul 31 Income Tax Payable 1460 Unadjusted Adjusted Entries Adjusted-post closing Unadjusted Trial Balance Debit Credit Debit Credit Debit Credit Net Income Statement Accounts Receivable 15900 15900 Cash 64850 64850 Service Revenue 47770 Prepaid Rent 9800 4900 4900 Less: Equipment 28800 28800 Advertising Expense 2700 Accumulated Depreciation 600 -600 Salary Expense 26800 Prepaid Insurance 4200 350 3850 Insurance Expense 350 Supplies 5440 1500 3940 Supply Expense 1500 Note Payable 6% 24400 24400 Depreciation Expense 600 Common Stock 24400 Share 65400 65400 Rent Expense 4900 Salary Payable 13400 13400 Interest Expense 122 Interes Payable 122 122 Utility Expense 980 Income Tax Payable 1460 1460 Accounts Payable 2700 980 3680 Net Income before tax 9818 Unearned Service Revenue 2400 2400 Income Tax 1460 Advertising Expense 2700 2700 Net Income 8358 Salaries Expense 13400 13400 26800 Service Revenue 47770 47770 Balance Sheet Insurance Expense 350 350 Common Stock 24400 Share 65400 Accounts Receivable 15900 Supply Expense 1500 1500 Retained Earning (2420+8358) 10778 Cash 64850 Depreciation Expense 600 600 Note Payable 6% 24400 Prepaid Rent 4900 Retained Earning 2420 2420 Salary Payable 13400 Equipment 28800 Interst Expense 122 122 Interes Payable 122 Accumulated Depreciation -600 Utility Expense 980 980 Income Tax Payable 1460 Prepaid Insurance 3850 Income Tax Expense 1460 1460 Accounts Payable 3680 Supplies 3940 Rent Expense 4900 4900 Unearned Service Revenue 2400 Total 145090 145090 23312 23312 161052 161052 121640 121640

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