At June 30, 2017, the end of its most recent fiscal year, Blue Computer Consulta

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.

Here is the adjusted trial balance

So with all this info can you Journalize and post closing entries and complete the closing process. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.)

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

CLOSING JOURNAL ENTRY Ref Account Title Debit Credit 1 Insurance expense $350 prepaid insurance $350 (to record insurance expenses) 2 Rent expense $4,900 Prepaid rent $4,900 (To record rent expense) 3 Supplies expense $1,550 Supplies $1,550 (To record Supplies expenses) 4 Depreciation -Equipment $600 Accumulated depreciation $600 (To record depreciation expense) 5 Interest expense $122 Interest payable $122 (To record interest expense) 6 Salaries and wages expense $13,400 Salaries and wages payable $13,400 (To record salaraies and wages expense) 7 Utilities expense $980 Accounts payable $980 (To record utilities expense) 8 Income tax expense $1,460 Income tax payable $1,460 (To record income tax expense)

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