Question

For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2012, Stefly decided to move to rented quarters and to open transactions during July Jul 1 1 2 4 The following assets were received from Steffy Lopez in exchange for common stock: cash, 512,500, accounts receivable, $20 300 supplies, 53,100, and office equipment, $7.500. There were no liabilities received Paid two months rent on a lease rental contract, 54,800 Paid the premiums on property and casualty insurance policies, 54,500 Received cash from clients as an advance payment for services to be provided, and recorded it as uneamed fees, $5,500 Purchased additional office equipment on account from Office Station Co. 56,500. Received cash from clients on account, $15.300. Paid cash for a newspaper advertisement, $400. Paid Office Station Co. for part of the debt incurred on July 5 SS 200 Recorded services provided on account for the period July 1-12. 513,300. Paid receptionist for two weeks salary, 51.700. 5 6 10 12 12 14 Record the fonowing transactions on Page 2 of the joumot: Jul 17 18 20 24 26 27 Recorded cash from cash clients for fees eamed during the period July 1-17. 59,450. Paid cash for supplies, 5600 Recorded services provided on account for the period July 15-20, 56,650 Recorded cash from cash clients for fees earned for the period July 17-24 55.000 Received cash from clients on account $12,000 Paid receptionist for two weeks' salary, 51,700 Paid telephone bill for July 5400 Paid electricity bill for July 5675 Recorded cash from cash clients for fees earned for the period July 25-31. $5.200 Recorded services provided on account for the remainder of July, 53000 Paid dividends. 512.500 29 31 31 31 31

Answer 1

Debit Credit 12,500 20,800 3,100 7,500 43,900 4,800 4,800 9 Date Account title & explanation 10 20Y2 11 01-Jul Cash 12 Accounts Receivable 13 Supplies 14 Office equipment 15 Common Stock 16 17 01-Jul Prepaid rent 18 Cash 19 20 02-Jul Prepaid Insurance 21 Cash 22 23 04-Jul Cash 24 Unearned Fees 25 26 05-Jul Office equipment 27 Accounts Payable 28 29 06-Jul Cash 30 Accounts Receivable 4,500 4,500 5,500 5,500 6,500 6,500 15,300 15,300

Debit Credit 12,500 20,800 3,100 7,500 43,900 4,800 4,800 9 Date Account title & explanation 10 20Y2 11 01-Jul Cash 12 Accounts Receivable 13 Supplies 14 Office equipment 15 Common Stock 16 17 01-Jul Prepaid rent 18 Cash 19 20 02-Jul Prepaid Insurance 21 Cash 22 23 04-Jul Cash 24 Unearned Fees 25 26 05-Jul Office equipment 27 Accounts Payable 28 29 06-Jul Cash 30 Accounts Receivable 4,500 4,500 5,500 5,500 6,500 6,500 15,300 15,300

32 400 10-Jul Miscellaneous Expense Cash 33 400 34 35 12-Jul Accounts Payable Cash 5,200 36 5,200 13,300 37 38 39 40 12-Jul Accounts Receivable Fees earned 13,300 41 14-Jul Salary Expense Cash 1,700 1,700 42 43 44 45 46 17-Jul Cash 9,450 Fees Earned 9,450 18-Jul Supplies Cash 600 600 47 48 49 50 51 6,650 20-Jul Accounts Receivable Fees earned 6,650 52 53 24-Jul Cash 5,000 54 Fees Earned 5,000

56 26-Jul Cash 12,000 Accounts Receivable 12,000 57 58 59 27-Jul Salary expense Cash 1,700 60 1,700 61 62 400 29-Jul Miscellaneous Expense Cash 63 400 64 675 65 66 31-Jul Miscellaneous Expense Cash 675 67 68 69 31-Jul Cash 5,200 Fees Earned 5,200 70 71 3,000 31-Jul Accounts Receivable Fees earned 3,000 72 73 74 75 76 31-Jul Dividends 12,500 Cash 12,500

4 5 6 7 8 10 11 12 13 14 Diamond Consulting Unadjusted Trial Balance For the month ending 31st July, 2016 Particulars Debit Credit Cash 32,475 Accounts Receivable 16,450 Supplies 3,700 Prepaid rent 4,800 Prepaid Insurance 4,500 Office equipment 14,000 Accumulaed Depreciation Accounts Payable 1,300 Salaries Payable Unearned Fees 5,500 Common Stock 43,900 Dividends 12,500 Fees Earned 42,600 Salary expense 3,400 Rent Expense Supplies Expense Depreciation Expense Insurance Expense 15 16 17 18 19 20 21 22 23 24 25

26 Miscellaneous Expense Total 1,475 93,300 27 93,300 28 29 30 31 Note; I have posted the Journal entries and prepared the unadjusted trial balance as no adjusting entries have been given in the question. 32