Question

accounts by inserting a li 7. Prepare a post-closing trial balance. OBJ. 4,5 PR 4-5A Complete accounting cycle e past several years, Steffy Lopez has operated a part-time consulting business from his home. As ofJuly 1, 2016, 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: July 1. The following assets were received from Steffy Lopez: 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 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 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 neriod Iuly 13-20 $6 650

Answer 1

1	Recording transactions of page 2
Journal
In books of Diamond Consulting for the month of July
Date	Particulars	Dr.($)	Cr.($)
17/07	Cash a/c	9450
	To Fees earned		9450
	( Being fees for the period 01/07 -17/07 received in cash from the clients)
18/07	Office supplies a/c	600
	To Cash		600
	(being cash paid for supplies)
20/07	Accounts recievable a/c	6650
	To Fees earned		6650
	(being services recorded on account for the period 13/07 -20/07)
24/07	Cash a/c	4000
	To Fees earned		4000
	( Being fees for the period 17/07 -24/07 received in cash from the clients)
26/07	Cash a/c	12000
	To Advance from clients		12000
	( Being cash received from the clients on account)
27/07	Salary a/c	1750
	To cash a/c		1750
	( being salary paid )
29/07	Telephone a/c	325
	To cash a/c		325
	( being cash paid )
31/07	Electricity a/c	675
	To cash a/c		675
	( being cash paid )
31/07	Cash a/c	5200
	To Fees earned		5200
	( Being fees for the period 25/07 -31/07 received in cash from the clients)

2	LEDGERS
	Cash Ledger
	Particulars	Dr.($)	Particulars	Cr.($)
	To Capital	13500	By Rent a/c	2400
	To Unearned fees	5500	By Prepaid rent a/c	2400
	To Advance from clients	15300	By Insurance a/c	4500
	To Fees earned	9450	By Advertisment a/c	400
	To Fees earned	4000	By Salary a/c	1750
	To Advance from clients	12000	By Office supplies a/c	600
	To Fees earned	5200	By Salary a/c	1750
			By Telephone a/c	325
			By Electricity a/c	675
			By Office station co. a/c	5200
			By Balance c/d	44950
	TOTAL	64950	TOTAL	64950
	Office equipement a/c
	Particulars	Dr.($)	Particulars	Cr.($)
	To Capital a/c	7500	By Balance c/d	14000
	To Office station co.	6500
	TOTAL	14000	TOTAL	14000
	Fees earned a/c
	To Profit and loss a/c	25300	By Cash a/c	9450
			By Cash a/c	4000
			By Accounts recievable a/c	6650
			By Cash a/c	5200
	TOTAL	25300	TOTAL	25300
	Accounts recievable a/c
	To Capital a/c	20800	By Balance c/d	27450
	To Fees earned	6650
	TOTAL	27450	TOTAL	27450
	Office supplies a/c
	To Capital a/c	3200	By Profit and loss a/c	3800
	To Cash a/c	600
	TOTAL	3800	TOTAL	3800

3	Unadjusted Trial Balance
	Particulars	Dr.($)	Cr.($)
	Capital a/c		45000
	Profit and loss a/c		14200
	Cash a/c	44950
	Office equipment a/c	14000
	Accounts recievable a/c	27450
	Unearned fees		5500
	Advance from clients		27300
	Office station co.		1300
	Prepaid insurance	4500
	Prepaid rent	2400
	Total	93300	93300

6. After adjustments income statement

INCOME STATEMENT
Profit and loss a/c
To Office supplies a/c	3800	By fees earned a/c	28050
To Rent a/c	2400
To Advertisment a/c	400
To Salary a/c	3675
To Telephone a/c	325
To Insurance a/c	375
To Depriciation a/c	750
To Electricity a/c	675
To Net profit	15650
TOTAL	28050	TOTAL	28050
Note- supplies have been considered to be revenue nature.

7	Adjusted Trial Balance
	Particulars	Dr.($)	Cr.($)
	Capital a/c		45000
	Profit and loss a/c		15650
	Cash a/c	44950
	Office equipment a/c	13250
	Accounts recievable a/c	27450
	Unearned fees		2750
	Advance from clients		27300
	Office station co.		1300
	Salary payble		175
	Prepaid insurance	4125
	Prepaid rent	2400
	Total	92175	92175