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Click to come the Daten-ellek to s t recent fiscal year, Flounder Computer Consultants post-closing trial balance was as follows: Debit Credit Accounts receivable Supplies $4,390 1,010 500 Accounts payable Unearned service revenue $340 940 3.000 Common stock Retained earnings 1.700 $5.900 $5,000 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 bil. This related to June utilities that were accrued at the end of June. 16 Met with a new cient, Thunder Bay Technologies. Received $10,100 cash in advance for future services to be performed 18 Pald semi-monthly salaries for $9,200. 20 Performed services worth $23.500 on account and billed customers.

Answer 1

Flounder Computer Consultants Dr. Journal Enteries Date Particulars 1.1.2017 Equipment a/c To Cash To Note Payable (Equipment purchased) Debit in $ Credit in $ 20400 3600 16800 2.7.2017 Dr. 42000 Cash a/c To Common Stock (Common stock issued) 42000 3.7.2017 Dr. 3000 Prepaid Insurance a/c To Cash (12 month insurance paid) 3000 3.7.2017 Dr. 6800 Prepaid Rent a/c To Cash (2 months rent paid) 6800 6.7.2017 3200 Supplies a/c To Cash (Supplies purchased) 3200 9.7.2017 No Journal Entry 1010 10.7.2017 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 1010 Dr. 940 13.7.2017 Unearned Service Revenue a/c To Service Revenue (Revenue recognized) 940

Dr. Date Particulars 14.7.2017 Accounts Payable a/c To Cash (Creditors paid) Debit in $ Credit in $ 340 340 Dr. 10100 16.7.2017 Cash a/c To Unearned Service Revenue (Advance from client) 10100 Dr. 9200 18.7.2017 Salaries Expense a/c To Cash (Salaries paid) 9200 23500 20.7.2017 Accounts Receivable a/c Dr. To Service Revenue (Services on account) 23500 Dr. 1800 20.7.2017 Advertising Expense a/c To Accounts Payable (Expense accrued) 1800 Dr. 8400 23.7.2017 Unearned Service Revenue a/c To Service Revenue (Revenue recognized) 8400 12600 27.7.2017 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 12600

Adjusting Enteries Date Particulars 31.7.2017 Insurance Expense a/c Dr. To Prepaid Insurance (Insurance expensed) 3000/12 Debit in $ Credit in $ 250 250 Dr. 3400 31.7.2017 Rent Expense a/c To Prepaid Rent (Rent expensed) 3400 Dr. 1050 31.7.2017 Supplies Expense a/c To Supplies (Supplies expensed) 1050 425 31.7.2017 Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) 425 31.7.2017 Interest Expense a/c Dr. To Interest Payable (Interest accrued) 16800 x 6% x 1/12 84 Dr. 9200 31.7.2017 Salaries Expense a/c To Salaries Payable (Salary accrued) 9200 Dr. 31.7.2017 Utilities Expense a/c To Accounts Payable (Expense accrued) 670 Dr. 1010 31.7.2017 Income Tax Expense a/c To Income Tax Payable (Income Tax accrued) 1010

Worksheet For the Month ending 31.7.2017 Particulars Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accum. Depre-Equip. Accounts Payable Unearned Service Revenue Interest Payable Salaries Payable Income Tax Payable Note Payable Common Stock Retained Earnings Service Revenue Salaries Expense Advertising Expense Insurance Expense Rent Expense Supplies Expense Depreciation Expense Interest Expense Utilities Expense Income Tax Expense Totals Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 43960 43960 10900 10900 3780 1050 2730 3000 250 2750 6800 3400 3400 20400 20400 425 425 1800 670 2470 1700 1700 84 84 9200 9200 1010 1010 16800 16800 45000 45000 1700 1700 32840 32840 9200 9200 18400 1800 1800 250 250 3400 3400 1050 1050 425 84 84 670 670 1010 1010 99840 99840 16089 16089 111229 111229 425

9200 Salaries Payable Salaries Expense 9200 9200 Bal Common Stock Accounts Receivable Unearned Service Rev Accounts Receivable Bal. 9200 Cash 4390 Equipment 42000 Prepaid Insurance 1010 Prepaid Rent 10100 Supplies 12600 Accounts Payable Salaries Expense Bal. 70100 3600 3000 6800 3200 340 9200 43960 70100 1010 Income Tax Payable Income Tax Expense 1010 1010 Bal. 1010 16800 Bal Service Revenue Accounts Receivable 1010 Cash 23500 Cash Bal. 24510 Note Payable Equipment 16800 16800 1010 12600 10900 24510 Bal. 16800 Common Stock Bal. 45000 Cash 45000 Bal 1050 Bal. Supplies 580 Supplies Expense 3200 Bal. 3780 3000 42000 45000 Cash 2730 3780 Retained Earnings Bal. 1700 1700 Bal. Cash 1700 1700 Prepaid Insurance 3000 Insurance Expense Bal. 3000 250 2750 3000

Cash 3400 Prepaid Rent 6800 Rent Expense Bal. 6800 3400 6800 Service Revenue Unearned Service Rev Accounts Receivable 32840 Unearned Service Rev 32840 940 23500 8400 32840 Bal. Cash Equipment 3600 16800 Bal. 20400 Note Payable 20400 20400 Cash Salaries Payable Salaries Expense 9200 9200 Bal. 18400 18400 18400 425 Accum. Depre - Equip. Depreciation Exper 425 425 Bal. Accounts Payable Advertising Expense 1800 Bal. 1800 425 1800 1800 Cash Accounts Payable 340 Bal. Advertising Expens 2470 Utilities Expense 2810 Prepaid Insurance 340 1800 670 2810 Insurance Expense 250 Bal. 250 Bal. 250 250

Prepaid Rent Service Revenue Service Revenue Bal. Unearned Service Revenue 940[Bal. 8400 Cash 1700 11040 940 10100 Rent Expense 3400 [Bal. 340o| 3400 3400 11040 Supplies Interest Payable Interest Expense Supplies Expense 1050 Bal. 1050 g Bal. 1050 1050 | 84 Interest Expense Depreciation Expense Accum. Depre - Eqi 425 Bal. 425 Interest Payable 425 425 Bal. 84 Utilities Expense 670 Accounts Payable _/Bal. 670 Income Tax Expense 1010 Income Tax Payable Bal. 1010 1010 1010