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		$5,650
Accounts receivable		1,300
Supplies		750
Accounts payable				$430
Unearned service revenue				1,210
Common stock				3,900
Retained earnings				2,160
		$7,700		$7,700

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 $4,800 cash and signing a 2-year note payable for $21,600. 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 21,600 shares of common stock for $54,000 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 $4,300 per month.
	6		Paid $4,100 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 $1,300 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 $1,210 in advance last month. All services relating to this payment are now completed.
	14		Paid $430 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 $13,000 cash in advance for future services to be performed.
	18		Paid semi-monthly salaries for $11,900.
	20		Performed services worth $30,200 on account and billed customers.
	20		Received a bill for $2,400 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 $10,800 of revenue from the cash advance received July 16.
	27		Received $16,200 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, $550 per month.
5.		Accrual of interest on note payable.
6.		Salaries for the second half of July, $11,900, to be paid on August 1.
7.		Estimated utilities expense for July, $860 (invoice will be received in August).
8.		Income tax for July, $1,300, will be paid in August.

Journalize and post closing entries and complete the closing process. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.)

Date	Account Titles and Explanation	Debit	Credit
July 31	enter an account title to close revenue account	enter a debit amount	enter a credit amount
	enter an account title to close revenue account	enter a debit amount	enter a credit amount
	(To close revenue account)
July 31	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	enter an account title to close an expense account	enter a debit amount	enter a credit amount
	(To close expense accounts)
July 31	enter an account title to close net income to retained earnings	enter a debit amount	enter a credit amount
	enter an account title to close net income to retained earnings	enter a debit amount	enter a credit amount
	(To close net income to retained earnings)

Cash
July 1 Bal.	5,650	July 1	4,800
July 2	54,000	July 3	3,600
July 10	1,300	July 3	8,600
July 16	13,000	July 6	4,100
July 27	16,200	July 14	430
		July 18	11,900
July 31 Bal.	56,720

Accounts Receivable
July 1 Bal.	1,300	July 10	1,300
July 20	30,200	July 27	16,200
July 31 Bal.	14,000

Prepaid Insurance
July 3	3,600	July 31	300
July 31 Bal.	3,300

Supplies
July 1 Bal.	750	July 31	1,350
July 6	4,100
July 31 Bal.	3,500

Prepaid Rent
July 3	8,600	July 31	4,300
July 31 Bal.	4,300

Equipment
July 1	26,400
July 31 Bal.	26,400

Accumulated Depreciation—Equipment
		July 31	550
		July 31 Bal.	550

Accounts Payable
July 14	430	July 1 Bal	430
		July 20	2,400
		July 31	860
		July 31 Bal.	3,260

Interest Payable
		July 31	108
		July 31 Bal.	108

Salaries and Wages Payable
		July 31	11,900
		July 31 Bal.	11,900

Income Taxes Payable
		July 31	1,300
		July 31 Bal.	1,300

Unearned Service Revenue
July 13	1,210	July 1 Bal.	1,210
July 23	10,800	July 16	13,000
		July 31 Bal.	2,200

Notes Payable
		July 1	21,600
		July 31 Bal.	21,600

Common Stock
		July 1 bal.	3,900
		July 2	54,000
		July 31 Bal.	57,900

Retained Earnings
choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit amount	July 1 Bal.	2,160
choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit amount	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Service Revenue
choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit amount	July 13	1,210
choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit amount	July 20	30,200
choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit amount	July 23	10,800
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Salaries and Wages Expense
July 18	11,900	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
July 31	11,900	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Rent Expense
July 31	4,300	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Advertising Expense
July 20	2,400	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Supplies Expense
July 31	1,350	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Utilities Expense
July 31	860	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Depreciation Expense
July 31	550	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Insurance Expense
July 31	300	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Interest Expense
July 31	108	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Income Tax Expense
July 31	1,300	choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit amount
choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit balance	choose the end date of the accounting period                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a credit balance

Income Summary
choose a transaction date                                                                       July 1 Bal.July 1July 2July 3July 6July 9July 10July 13July 14July 16July 18July 20July 23July 27July 31July 31 Bal.	enter a debit amount	choose a transaction date