Question

At June 30, 2017, the end of its most recent fiscal year, Flounder Computer Consultants’ post-closing trial balance was as follows: Debit Credit Cash $ 4,390 Accounts receivable 1,010 Supplies 580 Accounts payable $ 340 Unearned service revenue 940 Common stock 3,000 Retained earnings 1,700 $ 5,980 $ 5,980 The company underwent a major expansion in July. New staff was hired and more financing was obtained. Flounder 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 $ 16,800. 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 16,800 shares of common stock for $ 42,000 cash. 3 Paid $ 3,000 cash for a 12-month insurance policy effective July 1. 3 Paid the first 2 (July and August 2017) months’ rent for an annual lease of office space for $ 3,400 per month. 6 Paid $ 3,200 for supplies. 9 Visited client offices and agreed on the terms of a consulting project. Flounder will bill the client, Connor Productions, on the 20th of each month for services performed. 10 Collected $ 1,010 cash on account from Milani Brothers. This client was billed in June when Flounder performed the service. 13 Performed services for Fitzgerald Enterprises. This client paid $ 940 in advance last month. All services relating to this payment are now completed. 14 Paid $ 340 cash for a utility bill. This related to June utilities that were accrued at the end of June. 16 Met with a new client, Thunder Bay Technologies. Received $ 10,100 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $ 9,200. 20 Performed services worth $ 23,500 on account and billed customers. 20 Received a bill for $ 1,800 for advertising services received during July. The amount is not due until August 15. 23 Performed the first phase of the project for Thunder Bay Technologies. Recognized $ 8,400 of revenue from the cash advance received July 16. 27 Received $ 12,600 cash from customers billed on July 20. Adjustment data: 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 3. Supplies used, $ 1,050. 4. Equipment depreciation, $ 425 per month. 5. Accrual of interest on note payable. 6. Salaries for the second half of July, $ 9,200, to be paid on August 1. 7. Estimated utilities expense for July, $ 670 (invoice will be received in August). 8. Income tax for July, $ 1,010, will be paid in August. The chart of accounts for Flounder 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. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct. Enter the July 1 balances in the ledger accounts. Cash choose a transaction datechoose a transaction date enter a debit balance choose a transaction datechoose a transaction date enter a credit balance Accounts Receivable choose a transaction datechoose a transaction date enter a debit balance choose a transaction datechoose a transaction date enter a credit balance Supplies choose a transaction datechoose a transaction date enter a debit balance choose a transaction datechoose a transaction date enter a credit balance Accounts Payable choose a transaction datechoose a transaction date enter a debit balance choose a transaction datechoose a transaction date enter a credit balance Unearned Service Revenue choose a transaction datechoose a transaction date enter a debit balance choose a transaction datechoose a transaction date enter a credit balance Common Stock choose a transaction datechoose a transaction date enter a debit balance choose a transaction datechoose a transaction date enter a credit balance Retained Earnings choose a transaction datechoose a transaction date enter a debit balance choose a transaction datechoose a transaction date enter a credit balance 1700

Answer 1