Question

For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2018, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond Consulting entered into the following transactions during July:

Jul.	1	The following assets were received from Steffy Lopez in exchange for common stock: cash, $13,500; accounts receivable, $20,800; supplies, $3,200; and office equipment, $7,500. There were no liabilities received.
	1	Paid two months’ rent on a lease rental contract, $4,800.
	2	Paid the annual premiums on property and casualty insurance policies, $4,500.
	4	Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,500.
	5	Purchased additional office equipment on account from Office Station Co., $6,500.
	6	Received cash from clients on account, $15,300.
	10	Paid cash for a newspaper advertisement, $400.
	12	Paid Office Station Co. for part of the debt incurred on July 5, $5,200.
	12	Recorded services provided on account for the period July 1–12, $13,300.
	14	Paid receptionist for two weeks’ salary, $1,750.

Record the following transactions on Page 2 of the journal:

Jul.	17	Recorded cash from cash clients for fees earned during the period July 1–17, $9,450.
	18	Paid cash for supplies, $600.
	20	Recorded services provided on account for the period July 13–20, $6,650.
	24	Recorded cash from cash clients for fees earned for the period July 17–24, $4,000.
	26	Received cash from clients on account, $12,000.
	27	Paid receptionist for two weeks’ salary, $1,750.
	29	Paid telephone bill for July, $325.
	31	Paid electricity bill for July, $675.
	31	Recorded cash from cash clients for fees earned for the period July 25–31, $5,200.
	31	Recorded services provided on account for the remainder of July, $3,000.
	31	Paid dividends, $12,500.

A.	Insurance expired during July is $375.
B.	Supplies on hand on July 31 are $1,525.
C.	Depreciation of office equipment for July is $750.
D.	Accrued receptionist salary on July 31 is $175.
E.	Rent expired during July is $2,400.
F.	Unearned fees on July 31 are $2,750.

TO BEGIN START TO JOURNAL EACH ENTRY, THEN CONTINUE WITH A UNADJUSTED TRIAL BALANCE AS WELL AS A ADJUSTED TRIAL BALANCE

Answer 1

Credit $ 4,800 $ 4,500 $ 5,500 $ 6,500 Unadjusted Trial Balance Accounts Title Debit Credit Cash $ 32,450 Accounts Receivable $ 16,450 Supplies $ 3,800 Prepaid Insurance $ 4,500 Prepaid Rent $ 4,800 Office Equipment $ 14,000 Common Stock $45,000 Unearned fee $ 5,500 Accounts Payable $ 1,300 Dividend $ 12,500 Fee earned $41,600 Salaries Expenses $ 3,500 Telephone Expenses $ 325 Electricity Expenses $ 675 Advertising Expenses $ 400 Total $ 93,400 $93,400 $ 15,300 $ 400 $ 5,200 $ 13.300 $ 1,750 Date Accounts Title / Debit Jul-01 Prepaid Rent $ 4,800 Cash Jul-02 Prepaid Insurance $ 4,500 Cash Jul-04 Cash $ 5,500 Unearned fee Jul-05 Office Equipment $ 6,500 Accounts Payable Jul-06 Cash $ 15,300 Accounts Receivable Jul-10 Advertising Expenses $ 400 Cash Jul-12 Accounts Payable $ 5,200 Cash Jul-12 Accounts Receivable $13,300 Fee earned Jul-14 Salaries Expenses $ 1,750 Cash Jul-17 Cash $ 9,450 Fee earned Jul-18 Supplies $ 600 Cash Jul-20 Accounts Receivable $ 6,650 Fee earned Jul-24 Cash $ 4,000 Fee earned Jul-26 Cash $ 12,000 Accounts Receivable Jul-27 Salaries Expenses $ 1,750 Cash Jul-29 Telephone Expenses $ 325 Cash Jul-31 Electricity Expenses $ 675 Cash Jul-31 Cash $ 5,200 Fee earned Jul-31 Accounts Receivable $ 3,000 Fee earned Jul-31 Dividend $12,500 Cash Common Stock = 13500+20800+3200+7500 =45000 $ 9,450 $ 600 $ 6,650 $ 4,000 $ 12,000 $ 1,750 $ 325 $ 675 $ 5,200 $ 3,000 $ 12,500

Credit Debit $ 375 $ 375 $ 2,275 3800-1525 $ 2,275 $ 750 Adjusting entries No Accounts Title A. Insurance Expenses Prepaid Insurance B. Supplies Expenses Supplies C. Depreciation Expenses Accumulated Depreciation -Equipment D. Salaries Expenses Salaries payable E. Rent Expenses Prepaid Rent F. Unearned Fees Fee Earned $ 750 $ 175 $ 175 $ 2,400 $ 2,400 $ 2,750 5500-2750 $ 2,750 Adjusted Trial Balance Accounts Title Debit Credit Cash $32,450 Accounts Receivable $16,450 Supplies $ 1,525 3800-2275 Prepaid Insurance $ 4,125 4500-375 Prepaid Rent $ 2,400 4800-2400 Office Equipment $14,000 Accumulated Depreciation -Equipment $ 750 Common Stock $45,000 5500-2750 Unearned fee $ 2,750 Accounts Payable $ 1,300 Salaries payable $ 175 Dividend $ 12,500 Fee earned $44,350 Salaries Expenses $ 3,675 3500+175 Telephone Expenses $ 325 Salaries Expenses Rent Expenses $ 2,400 Insurance Expenses 375 Supplies Expenses 2275 Depreciation Expenses $ 750 Electricity Expenses $ 675 Advertising Expenses $ 400 $94,325 $94,325

Since in opening balances, as there is no liabilities, only Common Stock left(look at calculated above).

In unadjusted trial balance, Cash ,accounts receivables,supplies and office equipment are amount after considering the opening balances given in the Question.