Question

At June 30, 2017, the end of its most recent fiscal year, Sheffield Computer Consultants’ post-closing trial balance was as follows:

		Debit		Credit
Cash		$5,540
Accounts receivable		1,270
Supplies		730
Accounts payable				$420
Unearned service revenue				1,190
Common stock				3,800
Retained earnings				2,130
		$7,540		$7,540

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Sheffield conducted the following transactions during July 2017, and adjusts its accounts monthly.

July	1		Purchased equipment, paying $4,000 cash and signing a 2-year note payable for $21,200. 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 21,200 shares of common stock for $53,000 cash.
	3		Paid $3,600 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 $4,200 per month.
	6		Paid $4,000 for supplies.
	9		Visited client offices and agreed on the terms of a consulting project. Sheffield will bill the client, Connor Productions, on the 20th of each month for services performed.
	10		Collected $1,270 cash on account from Milani Brothers. This client was billed in June when Sheffield performed the service.
	13		Performed services for Fitzgerald Enterprises. This client paid $1,190 in advance last month. All services relating to this payment are now completed.
	14		Paid $420 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 $12,700 cash in advance for future services to be performed.
	18		Paid semi-monthly salaries for $11,700.
	20		Performed services worth $29,700 on account and billed customers.
	20		Received a bill for $2,300 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 $10,600 of revenue from the cash advance received July 16.
	27		Received $15,900 cash from customers billed on July 20.

Adjustment data:

1.		Adjustment of prepaid insurance.
2.		Adjustment of prepaid rent.
3.		Supplies used, $1,350.
4.		Equipment depreciation, $525 per month.
5.		Accrual of interest on note payable.
6.		Salaries for the second half of July, $11,700, to be paid on August 1.
7.		Estimated utilities expense for July, $850 (invoice will be received in August).
8.		Income tax for July, $1,270, will be paid in August.

The chart of accounts for Sheffield 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.

(c)

Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.)

Cash
July 1 Bal.	5,540	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period	enter a credit balance

Accounts Receivable
July 1 Bal.	1,270	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period	enter a credit balance

Prepaid Insurance
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount

Supplies
July 1 bal.	730	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period	enter a credit balance

Prepaid Rent
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount

Equipment
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period	enter a credit balance

Accounts Payable
choose a transaction date	enter a debit amount	July 1 Bal.	420
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period	enter a credit balance

Unearned Service Revenue
choose a transaction date	enter a debit amount	July 1 Bal.	1,190
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period	enter a credit balance

Notes Payable
choose a transaction dateJ	enter a debit amount	choose a transaction date	enter a credit amount
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period	enter a credit balance

Common Stock
choose a transaction date	enter a debit amount	July 1 Bal.	3,800
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period	enter a credit balance

Retained Earnings
choose a transaction date	enter a debit amount	July 1 Bal.	2,130

Service Revenue
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit amount	choose a transaction date	enter a credit amount
choose a transaction date	enter a debit balance	Choose a transaction date	enter a credit balance

Salaries and Wages Expense
choose a transaction	enter a debit amount	choose a transaction	enter a credit amount

Advertising Expense
choose a transaction	enter a debit amount	choose a transaction	enter a credit amount

Answer 1

	Cash				Ref
	July 1 Bal.	5,540	01-Jul	4000
	02-Jul	53000	03-Jul	3600
	10-Jul	1270	03-Jul	8400
	16-Jul	12700	06-Jul	4000
	27-Jul	15900	14-Jul	420
			Jul-18	11700
			July 31 Bal.	56,290
	Accounts Receivable
	July 1 Bal.	1,270	Jul-10	1270
	Jul-20	29700	27-Jul	15900
			July 31 Bal.	13,800
	Prepaid Insurance
	03-Jul	3600	31-Jul	300
			July 31 Bal.	3300
	Supplies
	July 1 bal.	730	31-Jul	1350
	06-Jul	4000	July 31 Bal.	3380	3
	Prepaid Rent
	03-Jul	8400	31-Jul	4200
			July 31 Bal.	4200
	Equipment
	01-Jul	25200	31-Jul	525	4
			July 31 Bal.	24675
	Accounts Payable
	14-Jul	420	July 1 Bal.	420
			Jul-20	2300
			31-Jul	106	5
			31-Jul	11700	6
			31-Jul	850	7
	July 31 Bal.	16226	31-Jul	1270	8
	Unearned Service Revenue
	Jul-13	1190	July 1 Bal.	1,190
	Jul-23	10600	Jul-16	12700
	July 31 Bal.	2,100
	Notes Payable
	July 31 Bal.	21200	01-Jul	21200
	Common Stock
	July 31 Bal.	56,800	July 1 Bal.	3,800
			Jul-02	53000
	Retained Earnings
	July 31 Bal.	2,130	July 1 Bal.	2,130
	Service Revenue
	July 31 Bal.	41490	Jul-13	1190
			Jul-20	29700
			Jul-23	10600
Ref	Salaries and Wages Expense
	Jul-18	11700
6	31-Jul	11700	July 31 Bal.	23400
	Advertising Expense
	Jul-20	2300	July 31 Bal.	2300
1	Insurance Expense				Ref.
	31-Jul	300	July 31 Bal.	300	1
2	Rent Expense
	31-Jul	4200	July 31 Bal.	4200	2
3	Supplies Expense
	31-Jul	1350	July 31 Bal.	1350
4	Depreciation Expense - Equip
	31-Jul	525	July 31 Bal.	525
5	Interest Expense
	31-Jul	106	July 31 Bal.	106
7	Utility Expense
	31-Jul	850	July 31 Bal.	850
8	Income tax Expense
	31-Jul	1270	July 31 Bal.	1270