Question

Credit Cash Debit $4.500 1,030 590 Accounts receivable Supplies Accounts payable $340 Unearned service revenue 960 Common stock 3.100 Retained earning 1.720 56,120 56,120 The company underwent a major expansion in July, New staff was hired and more financing was obtained Grouperconducted the following transactions during July 2022, and adjusts its accounts monthly July 1Purchased equipment, paying 53 200 cash and signing a 2 year note payable for $17.200. The equipment has a 6-year useful life. The note has a 6% interest rate which is payable on the first day of each following month 2 Issued 17,200 shares of common stock for $43,000 cash 3 Paid $3,000 cash for a 12-month insurance policy effective July 1 3 Paid the first 2 July and August 2022) months rent for an annual lease of office space for $3.400 per month 6 Paid $3,300 for supplies. Visited client offices and agreed on the terms of a consulting project Grouper will bill the client. Connor Productions, on the 20th of each month for services performed Collected $1,030 cash on account from Milan Brothers. This client was billed in June when Grouper performed the 10 service Performed services for Fitzgerald Enterprises. This client paid $960 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 $10.300 cash in advance for future services to be performed. 18 Paid semi-monthly salaries for $9.500 20 Performed services worth $24.100 on account and billed customers 20 Received a bill for $1,900 for advertising services received during July. The amount is not due until August 15. Performed the first phase of the project for Thunder Bay Technologies. Recognized $8.500 of revenue from the cash advance received July 16. 27 Received $12.900 cash from customers billed on July 20. Adjustment data: 1. Adiustment of prepaid insurance 2. Adjustment of prepaid rent. 3. Supplies used. 51.100. 4. Equipment depreciation, $425 per month 5. Accrual of interest on note payable. 6. Salaries for the second half of July. 59.500, to be paid on August 1 7. Estimated utilities expense for July $690 invoice will be received in August). 8. Income tax for July $1,030, will be paid in August. The chart of accounts for Grouper Computer Consultants contains the following accounts: Cash Accounts Receivable Supplies Prepaid Insurance. Prepaid Rent Equipment, Accumulated Depreciation-Equipment, Accounts Payable. Notes Payable, Interest u nho Salaries and Wares Payable, Unearned Service Revenue. Common Stock Retained Earnings

Answer 1

Grouper Computer Consultants T Accounts Date Debit Date Credit Cash Date Debit Date Credit Accounts Receivable Op bal $ 1,030 10-Jul $ 1,030 20-Jul $ 24,100 27-Jul $ 12,900 Date Debit Date Credit Date Debit Date Credit Prepaid Insurance Supplies 3-Jul $ 3,000 31-Jul $ 250 Op bal $ 590 6-Jul $ 3,300 31-Jul $ 1,100 Op bal $4,500 2-Jul $43,000 10-Jul $ 1,030 16-Jul $ 10,300 27-Jul $ 12,900 1-Jul $ 3,200 3-Jul $ 3,000 3-Jul $ 6,800 6-Jul $ 3,300 14-Jul $ 340 18-Jul $ 9,500 Bal. Bal. $ 45,590 Prepaid Rent 3-Jul $ 6,800 31-Jul $ 3,400 $ 11,200 Equipment 1-Jul $ 20,400 Bal. $ 2,750 Accumulated Depreciation-Equipment 31-Jul $ 425 Bal. $ 2,790 Accounts Payable 14-Jul $ 340 Op bal $ 340 20-Jul $ 1,900 31-Jul $ 690 Bal. Bal. $ 3,400 Interest Payable 31-Jul $ $ 20,400 Salaries & wages Payable 31-Jul $ 9,500 al. $ 425 Income taxes Payable 31-Jul $ 1,030 Bal. $ 2,590 Unearned Service Revenue 13-Jul $ 960 Op bal $ 960 23-Jul $ 8,600 16-Jul $ 10,300 86 Bal. $ 86 Notes Payable 1-Jul $ 17,200 Bal. $ 9,500 Common Stock Op bal $ 3,100 2-Jul $ 43,000 Bal. $ 1,030 Retained Earnings Op bal $ 1,720 31-Jul $ 5,779 Bal. $ 1,700 Income Summary 31-Jul $ 27,881 31-Jul $ 33,660 31-Jul $ 5,779 $ 7,499 Bal. Bal. $ 17,200 Service revenue 13-Jul $ 960 20-Jul $ 24,100 31-Jul $ 33,660 23-Jul $ 8,600 |Bal. $ 46,100 Salaries & wages expense 18-Jul $ 9,500 31-Jul $ 9,500 31-Jul $ 19,000 Bal. Rent expense 31-Jul $ 3,400 Advertsing expense 20-Jul $ 1,900 31-Jul $ 3,400 31-Jul $ 1,900 Bal. $ - Supplies expense 31-Jul $ 1,100 31-Jul $ 1,100 Bal. $ . Utilties expense 31-Jul $ 690 31-Jul $ Bal. $ Depreciation expense 3 1-Jul $ 425 31-Jul $ Bal. $ . Insurance expense 31-Jul $ 250 31-Jul $ 690 425 250 Bal. Bal. $ - Bal. $ . Interest expense 31-Jul $ 86 31-Jul $ Bal. $ - Income tax expense 31-Jul $ 1,030 | 31-Jul $ 1,030 86 Bal. $- Bal. $

Adjusted TB Debit Credit 45,590 11,200 2,790 2,750 3,400 20,400 425 2,590 Post Closing TB Debit Credit 45,590 11,200 2,790 2,750 3,400 20,400 425 2,590 86 86 Grouper Computer Consultants Account Names Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation Equipment Accounts Payable Interest Payable Salaries & wages Payable Income tax Payable Unearned Service Revenue Notes Payable Common Stock Retained Earnings Service Revenue Salaries & wages expense Rent expense Advertising expense Supplies expense Utilities expense Depreciation expense Insurance expense Interest expense Income tax expense Totals 9,500 1,030 1,700 17,200 46,100 1,720 33,660 9,500 1,030 1,700 17,200 46,100 7,499 19,000 3,400 1,900 1,100 690 425 250 1,030 114,011 114,011 86,130 86,130

33,660 Grouper Computer Consultants Income Statement For the month ended July 31, 2022 Revenues Service Revenue Expenses Salaries & wages expense Rent expense Advertising expense Supplies expense Utilities expense Depreciation expense Insurance expense Interest expense Income tax expense Total Expenses Net Income 19,000 3,400 1,900 1,100 690 425 250 86 1,030 27,881 5,779